Who would have realised that a new tax on banks would be shrugged off by the markets with some financial stocks marked up? But a bank levy was widely trailed and the market reaction indicated that the levy was at the more modest end of expectations. It could also be seen as offset by the impact of the reduction in corporation tax rates announced in the Budget. Perhaps a surprising point when you think about the banks’ tax losses (which have just become less valuable) but in principle reducing both corporation tax rates and capital allowances should benefit financial services more than some other sectors.
There may however be more to come. The new bank levy to be introduced from 1 January 2011 may be followed by a further special tax a financial activities tax (FAT) of which...
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Who would have realised that a new tax on banks would be shrugged off by the markets with some financial stocks marked up? But a bank levy was widely trailed and the market reaction indicated that the levy was at the more modest end of expectations. It could also be seen as offset by the impact of the reduction in corporation tax rates announced in the Budget. Perhaps a surprising point when you think about the banks’ tax losses (which have just become less valuable) but in principle reducing both corporation tax rates and capital allowances should benefit financial services more than some other sectors.
There may however be more to come. The new bank levy to be introduced from 1 January 2011 may be followed by a further special tax a financial activities tax (FAT) of which...
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:
