The sector’s corporation tax bill, including the bank levy, increased 24% from 2015 to 2016, when it paid £11.8bn, according to Moore Stephens.
“Nobody argues that the financial services sector shouldn’t be paying its fair share of tax, but go too far and we risk losing out to other jurisdictions,” said David Kinsella, business tax director at Moore Stephens.
“The impact of any Brexit deal remains to be seen but the results do illustrate the importance of the UK continuing to be an attractive setting for financial services business going forward,” he added.
Questions still remain over the shape of a financial services deal following the UK’s separation from the EU.
In July, the EU’s chief negotiator Michel Barnier dismissed the UK’s offer of a deal on financial services.
The UK has a competitively low corporation tax of 19%, which is due to be lowered to 17% by 2020.
At the end of last year, the US slashed its corporation tax from 35% to 20%, more in line with the UK’s rates.
In April, CBI analysis showed that UK businesses paid £186bn in corporate taxes in the year to April, £57bn of which was made up of corporation tax, while the largest contribution came through employer’s NIC (£60.3bn).
At the beginning of the year, reports found that SME’s seem to be paying a higher effective rate of corporation tax than big business.
HMRC has been contacted for comment.