UK Eyes Up to £3 Billion Bank Tax Hike Ahead of Budget

3 articles · Updated · bbc.co.uk · Oct 16

John Healey is preparing a Budget raid on banks in two weeks, with executives told the sector is likely to face higher taxes after the biggest four lenders made about £15 billion in first-half profit.
A return of the bank surcharge to 8% from 3% could raise roughly £2 billion a year, while a temporary curb on using past losses to offset profits could add about £1 billion.
UK Finance warned extra levies would hurt competitiveness, investment and jobs, while some bank executives said a loss-offset moratorium would be more bearable than broader tax increases.
The sector already pays a 25% corporation tax rate plus a 3% surcharge and a balance-sheet levy, contributing nearly £40 billion to the Treasury last year including employee income tax.
Pressure for a rise has grown as higher interest rates widen lending margins, with unions and former banker Philip Augar arguing booming banks should pay more after years of implicit taxpayer backing.