Retail and hospitality carry the highest effective tax rates in the UK, BRC data finds

Busy High Street

Source: Getty Images/iStock/William Barton

Retail and hospitality pay more tax relative to their profits than any other sector of the UK economy, according to new analysis commissioned by the British Retail Consortium.

For every £1 of pre-tax profit, retailers paid 72p in business taxes in 2025-26. Hospitality businesses paid even more, at 82p for every pound of profit.

 

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