• Global tax advisory revenues grow US$5bn in just three years

• UK market is set to grow faster than any other European country in 2019

• Big Four’s market share of global revenues stands at 87%

Tax advisory lags behind other areas of professional services in terms of market size, but a new report finds today that it packs a punch when it comes to global growth, which expanded by 8.6% to US$20.3bn in 2017. The global market has grown US$5bn in just three years (2014–2017).

Although the UK tax advisory market expanded at a slightly slower rate of 7% to US$2.2bn in 2017, once the details of the UK’s exit from the EU become clear in 2019, growth is estimated to almost double to 13% as Brexit-related work will drive strong levels of growth. Indeed, the UK is forecast to grow faster than any other European country next year.

These figures are published today in a new report from the leading research and strategy firm for the global professional services industry, Source Global Research. The report found that the main global tax advisory services are business tax management (US$9.27bn), transfer pricing (US$5.18bn), and international tax (US$1.58bn). The financial services sector is the largest sector for global tax work ($6.64bn), making up almost a third of the world’s tax advisory market in 2017.

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.”

The Source report also reveals that the firms controlling the largest share of the global tax advisory market are the Big Four, with an 87% market share. EY leads the pack with 35% of global revenues.

The Source report says that there are three major drivers of tax advisory work in the market: