Corporation tax receipts rise 5% in May

UK corporation tax receipts rose 5% in the year to May 2025, reaching £91.5bn, according to HM Revenue and Customs (HMRC). This was up from £86.9bn the previous year.

Receipts have more than doubled in the past decade, increasing 112% from £43bn in 2015. This compares with a 57% rise in overall tax receipts to £866.4bn, up from £536bn, according to data from accountancy firm Lubbock Fine.

The firm warned that high corporation tax rates threaten the UK’s ability to attract foreign investment, as companies look to countries with more favourable regimes.

Alex Altmann, partner and head of the firm’s German desk, said: “Low tax rates were once one of the UK’s key advantages over other large European economies but that advantage has since eroded away.

“It’s no secret that over the last ten years the UK has lost its status as an obvious choice for foreign direct investment. Higher taxes and the departure from the EU market haven’t helped.”

He added: “Rising tax bills make it harder for the UK to bring in investment that, ultimately, creates jobs and supports economic growth. Over the past decade, the UK corporate tax rate has risen from 20% to 25%, while the US has cut its rate from 39% to 26%, France from 38% to 36%, and Italy from 31% to 28%.

“Countries that once had much higher taxes are steadily cutting them, while the UK is moving in the opposite direction. The UK needs to reduce its headline corporation tax rate, especially after it just hiked the employer’s rate for national insurance.”