£6bn tax created from bank bonus

HMRC could receive up to £6bn more than expected from the newly created tax on banker's bonuses.

City analysts said the chancellor can expect to see between £5bn and £6bn more than was previously expected, The Mirror reported.

Alistair Darling had hoped the banker's bonus tax, announced at last year's pre-Budget report, would raise £550m.

Some city experts predict banks will absorb the tax rather than reduce bonuses.

Bonuses are now subject to a 50% tax if they exceed £25,000.

Further reading:

Deutsche Bank to share bonus tax pain globally

IT professionals could be hit with bankers bonus tax

Bonus tax could rake in £2.5bn