Helen Lethaby reviews recent developments affecting the City, including the consultation on bank levy banding and the surprise Budget announcement on profit transfer anti-avoidance
Key developments since last month’s update are as follows.
Other commentators have pointed out that the stated objectives of the bank levy – to raise a minimum in extra tax (£2.9bn) from the banking sector and to incentivise banks to adopt less risky funding profiles – are contradictory. If the tax base of chargeable equity and liabilities is reduced as a result of banks becoming more prudent the bank levy rate will simply be increased to restore the tax take to forecast levels.
The consultation document published on 27 March entitled A bank levy banding...
