Palantir's UK Tax Bill Shrinks Despite Rising Profits

Palantir has benefited from millions of pounds in tax deductions that have reduced its UK corporate-tax liability despite strong profits, according to an investigation by Aman Sethi and Jade-Ruyu Yan for openDemocracy.

Palantir's UK operations have benefited from tax deductions while the technology company has expanded its business and public-sector contracts in Britain. [Photo: Palantir X]

The technology company has won at least £670 million in UK public contracts in recent years, helping make the country its second-largest market by revenue after the United States, where it is headquartered.

Although the UK accounted for 10 percent of Palantir's global revenue last year, its UK tax payments represented less than 5 percent of the company's total global cash-tax spending, according to US filings cited in the investigation.

The filings indicate that Palantir's UK subsidiary paid less than $1.08 million (£820,000) in UK cash taxes in 2025, less than it paid in South Korea, Japan, France and Germany.

The company accumulated tax deductions related to its rising share price, according to the report.

Palantir's UK subsidiary reported £25.3 million in pretax profit in 2024 but assessed its UK corporate-tax liability at approximately £2 million, according to accounts filed with Companies House.

That represented an effective tax rate of about 8 percent, substantially below the standard 25 percent UK corporation-tax rate applicable to companies with profits above the relevant threshold.

The subsidiary's reported tax rate was 4.7 percent in 2023, on pretax profits of approximately £19.1 million, and 4.2 percent in 2022, on pretax profits of about £19.9 million.

The company's UK accounts for 2025 onward were not yet available, according to the report. Over the three years examined, the subsidiary paid approximately £3.7 million in tax on £63.4 million in cumulative pretax profits.