Starbucks retail arm paid no corporation tax in UK last year

Starbucks's UK retail business paid no corporation tax for last year as it dived to a £35m loss after paying £40m in royalty and licence fees to its parent company.

- Sarah Butler

The US-owned coffee chain said it made the payments despite sales declining 4% to £525.6m in the year to 29 September 2024, amid what it called a "challenging economic climate" and a consumer boycott linked to the Gaza conflict.

Sales fell even though it opened 100 new British stores during the period. The previous year it had made a £16.9m pre-tax profit.

The company's trading was hit after it was named on a list of companies to boycott for its perceived support for, investment in, or links to, Israel. It has denied having any political agenda, saying: "We do not use our profits to fund any government or military operations anywhere."

In spite of sliding sales, Starbucks's UK retail arm paid out just over £40m in royalty and licence fees to its parent company - a similar figure to the previous year - tipping it into loss so that it paid no corporation tax.