In 2022/23 the value of tax receipts for the United Kingdom amounted to approximately 827.74 billion British pounds. This represented a net increase of over 512.1 billion pounds when compared with 2000/01. Since that year, the total value of tax receipts showed year-on-year increases in most years, except for 2008/09, 2009/10, and 2020/21 when the value declined. Tax receipts form the bulk of UK government income, based on various direct and indirect taxes. Tax revenue sources Of the revenue generation by taxation in 2023/24, over 273.27 billion of this came from Income Tax receipts, which was the main source of direct tax income for the government. After income tax, the next most substantial direct tax were contributions from National Insurance, which amounted to just over 177.74 billion pounds of tax revenue in 2023/24. The UK's main goods and services tax; Value-added Tax (VAT) amounted to 169 billion pounds, while Corporation Tax receipts added up to around 88 billion pounds. Although other smaller direct and indirect taxes produce notable income, these four sources were by far the main sources in the 2023/24 financial year. UK government finances While taxes and other sources of income raised more than one trillion pounds in 2023/24, the UK government expenditure was around 1.1 trillion pounds. This gap between revenue and expenditure was financed via government borrowing, which amounted to 107 billion pounds in 2023/24. As the UK government has been spending more than it earns for several years, this has resulted in significant government debt building up, expected to be the equivalent of 103.1 percent of GDP in 2023/24.

In 2023/24, income tax receipts in the United Kingdom amounted to 273.3 billion British pounds, compared with 248.4 billion in the previous year. Although the value of income tax receipts has grown quite consistently throughout this period, there is a sharp increase observable from 2021/22 onwards. The period of high inflation from 2021 onwards led to faster wage growth, which pushed many UK workers into higher tax bands, resulting in the increased income tax revenue. Income tax brackets The amount which workers in the United Kingdom pay in income tax is determined by how much they earn, placing them in different income tax bands. All workers in the United Kingdom are entitled to earn a personal allowance of 12,750 pounds before they are charged income tax. The Basic rate of 20 percent applies to income between 12,750 and 37,700, with a higher rate of 40 percent charged on incomes between 37,701 and 125,140 pounds. The highest tax band stands at 45 percent, for earnings over 125,140 pounds. Main UK taxes Income tax is the largest source of UK government revenue, accounting for 9.8 percent of gross domestic product in 2022/23. Value Added Tax was the next largest source of UK government revenue, followed by National Insurance, and Corporation Tax. Value Added Tax or VAT is the largest indirect tax in the UK, and is raised via a 20 percent levy on most goods and services sold in the UK. National Insurance Contributions form an additional direct tax on earnings in the UK, while Corporation Tax taxes the profits of companies resident in the UK.

Key information about United Kingdom Tax Revenue

• UK Tax Revenue was reported at 256.268 USD bn in Dec 2024.
• This is a decrease from the previous figure of 266.877 USD bn for Sep 2024.
• UK Tax Revenue data is updated quarterly, averaging 68.866 USD bn from Mar 1957 to Dec 2024, with 272 observations.
• The data reached an all-time high of 293.309 USD bn in Mar 2024 and a record low of 3.111 USD bn in Jun 1957.
• UK Tax Revenue data remains active status in CEIC and is reported by CEIC Data.
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Tax Revenue: USD: Quarterly.

CEIC calculates quarterly Tax Revenue as the sum of Taxes on Income and Wealth, Taxes on Production, Other Current Taxes and Taxes on Capital and converts it into USD. Office for National Statistics provides Tax Revenue in local currency. Federal Reserve Board average market exchange rate is used for currency conversions.

In 2023/24 receipts from capital gains tax in the United Kingdom amounted to approximately 15.4 billion British pounds, compared with 16.93 billion pounds in the previous year the previous year.

Tax Revenue in the United Kingdom decreased to 67170 GBP Million in February from 95976 GBP Million in January of 2025. This dataset includes a chart with historical data for the United Kingdom Tax Revenue.

Key information about UK Tax revenue: % of GDP

• United Kingdom Tax revenue: % of GDP was reported at 27.3 % in Dec 2024.
• This records a decrease from the previous number of 28.4 % for Sep 2024.
• UK Tax revenue: % of GDP data is updated quarterly, averaging 25.7 % from Mar 1955 to Dec 2024, with 280 observations.
• The data reached an all-time high of 44.2 % in Mar 1955 and a record low of 19.9 % in Jun 1960.
• UK Tax revenue: % of GDP data remains active status in CEIC and is reported by CEIC Data.
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Tax Revenue: % of Nominal GDP: Quarterly.

CEIC calculates quarterly Tax Revenue as % of Nominal GDP from quarterly Tax Revenue and quarterly Nominal GDP. Tax Revenue is calculated as the sum of Taxes on Income and Wealth, Taxes on Production, Other Current Taxes and Taxes on Capital. Office for National Statistics provides Tax Revenue in local currency and Nominal GDP in local currency.

Data on the effects of taxes and benefits on household income publication from 2001, including average incomes, taxes and benefits and household characteristics of all, retired and non-retired individuals and households in the UK by quintile and decile groups.

In 2024/25, the government of the United Kingdom is expected to receive 1,139 billion British pounds of public sector current receipts, with 303 billion British pounds coming from income tax, as well as 203 billion pounds from VAT.

In 2022/23 corporation tax receipts in the United Kingdom amounted to approximately 88.3 billion British pounds, compared with 80.3 billion in the previous year. The vast majority of this income came from onshore corporation tax receipts, which amounted to over 83.9 billion pounds, with offshore corporation tax contributing almost three billion pounds, and the banks surcharge around 1.45 billion pounds.

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United Kingdom UK: Revenue and Grants: Revenue: Tax Revenue data was reported at 502,551.000 GBP mn in 2016. This records an increase from the previous number of 475,201.000 GBP mn for 2015. United Kingdom UK: Revenue and Grants: Revenue: Tax Revenue data is updated yearly, averaging 177,335.000 GBP mn from Dec 1972 (Median) to 2016, with 45 observations. The data reached an all-time high of 502,551.000 GBP mn in 2016 and a record low of 15,665.000 GBP mn in 1972. United Kingdom UK: Revenue and Grants: Revenue: Tax Revenue data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.WDI: Government Revenue, Expenditure and Finance. Tax revenue refers to compulsory transfers to the central government for public purposes. Certain compulsory transfers such as fines, penalties, and most social security contributions are excluded. Refunds and corrections of erroneously collected tax revenue are treated as negative revenue.; ; International Monetary Fund, Government Finance Statistics Yearbook and data files.; ;

Average annual incomes, taxes and benefits, and household characteristics of retired and non-retired households in the UK. Data for financial years, by quintile and decile groups, country and region and tenure type.

United Kingdom UK: Revenue and Grants: Revenue: Taxes on Income: Profits and Capital Gains: % of Revenue data was reported at 33.676 % in 2016. This records an increase from the previous number of 32.988 % for 2015. United Kingdom UK: Revenue and Grants: Revenue: Taxes on Income: Profits and Capital Gains: % of Revenue data is updated yearly, averaging 38.098 % from Dec 1972 (Median) to 2016, with 45 observations. The data reached an all-time high of 44.420 % in 1975 and a record low of 32.852 % in 2013. United Kingdom UK: Revenue and Grants: Revenue: Taxes on Income: Profits and Capital Gains: % of Revenue data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s UK – Table UK.World Bank: Government Revenue, Expenditure and Finance. Taxes on income, profits, and capital gains are levied on the actual or presumptive net income of individuals, on the profits of corporations and enterprises, and on capital gains, whether realized or not, on land, securities, and other assets. Intragovernmental payments are eliminated in consolidation.; ; International Monetary Fund, Government Finance Statistics Yearbook and data files.; Median;