**2.2. Tax revenues by country within the UK**

In terms of trends the composition of UK tax revenues by type of tax has been stable between 2008 and 2009 and 2015–2016. In 2008–2009 income tax accounted for 34% of total tax revenues and in 2015–2016, in both periods representing the largest revenues for any of the taxes. The next largest contributor to overall tax revenues in 2015–2016 was VAT, comprising 22% of revenues (against 18% in 2008–2009). The contribution of NICs declined slightly in relative importance from 22% of revenues in 2008–2009 to 21% in 2015–2016. Very roughly about three quarters of UK tax revenues in both 2008–2009 and 2015–2016 was made up from three taxes—income tax, NICs and VAT. Corporation tax, the next biggest contributor, declined

**Table 1** provides details of the revenues of individual taxes and their evolution over time. As has already been seen three taxes jointly provide about 75% of total UK tax revenues—income tax, NICs and VAT. Fuel duties have consistently yielded significant revenues (£27.6 billion in 2015–2016). A range of excise duties on tobacco and alcoholic drinks yielded a combined

slightly in relative importance from 2008–2009 to 2015–2016.

86 Taxes and Taxation Trends

**Table 1.** Decomposition of UK tax revenues (£ million).

**Figure 2** presents the composition of UK tax revenues by component country for three different time periods—2000–2001, 2007–2008 and 2015–2016.

The results show a stable pattern of UK tax receipts by country. In all three time periods Northern Ireland accounts for about 2% of total tax revenues, Wales for 3–4% and Scotland

**Figure 2.** UK tax receipts by country (a) 2000–2001, (b) 2007–2008, and (c) 2015–2016.

for 8–9%. In each time revenues from England dominate the UK total. Receipts from England accounted for 86% of the total in 2000–2001 and 87% of the total in 2015–2016.
