Source Global found that in 2017 tax advisory grew by 8.6% globally and by 7% in the UK.
An increasingly complex tax landscape, convergence between tax and risk issues and a growing appetite for automation were named the main drivers of tax advisory work.
By the end of this year, the market intelligence provider expects the value of the global tax advisory market will have grown 11% to £18.56bn.
Despite expanding at a slower rate than usual in 2017, the UK market is expected to grow faster than any other European country this year.
The report found the main global tax advisory services are business tax management (US$9.27bn), transfer pricing (£7bn), and international tax (£1.2bn). However, the financial services sector is the largest for global tax work at £5.05bn.
Fiona Czerniawska, director at Source Global Research, said, “With decisions about tax increasingly becoming enmeshed with wider business decisions, firms need to be able to provide multidisciplinary offerings that integrate tax decisions with other key areas such as risk and audit—and even business consulting services—putting the Big Four in a strong position with clients.
“Deciding where to manufacture, hold intellectual property rights, or locate head office functions are all increasingly becoming as much of a tax decision as a business one. This illustrates why Brexit will lead to an increase in tax advisory work.”
Moreover, the report found that the Big Four firm dominate the global market by 87%, with EY leading the pack with 35% of the global revenues.