Helen Buchanan, Tax Partner, Freshfields Bruckhaus Deringer comments on the Budget measures affecting banks
The benefit of lower corporation tax is tempered for banks by the new bank levy. As trailed in the Coalition Agreement the bank levy will be imposed from 1 January 2011 raising £2 billion a year.
The stated aims are to encourage banks to move to less risky longer-term funding and to ensure a ‘fair contribution’ to the UK financial system reflecting the risks they pose. The levy is not an insurance fund and proceeds will not be ring-fenced – so can be spent.
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Home >Articles > Bank levy and more bonus scrutiny
Bank levy and more bonus scrutiny
Helen Buchanan, Tax Partner, Freshfields Bruckhaus Deringer comments on the Budget measures affecting banks
The benefit of lower corporation tax is tempered for banks by the new bank levy. As trailed in the Coalition Agreement the bank levy will be imposed from 1 January 2011 raising £2 billion a year.
The stated aims are to encourage banks to move to less risky longer-term funding and to ensure a ‘fair contribution’ to the UK financial system reflecting the risks they pose. The levy is not an insurance fund and proceeds will not be ring-fenced – so can be spent.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
