Remove tax relief on bankers' pay, calls the TUC

REMOVING BANKERS' tax relief on their high earnings would raise nearly £2bn, claims trade union TUC.

The union, in its Bonus Season report, calls on tax relief on high earnings (more than £262,000) to be disallowed as a deductible expense for corporation tax purposes. With figures suggesting that some third of the high earners in the UK come from the banking sector, that could equate to a £1.7bn take for the Treasury.

TUC general secretary, Brendan Barber, said: "Irresponsible banks played the biggest part in causing the crash. But while the rest of us are still paying a heavy price, banks have gone back to business as usual with eye-watering bonuses for their top staff.

"It is only right that they share these with the rest of us, and making the top bonus pool liable for corporation tax means they would pay a little more towards clearing up the mess they made.

"Scrapping corporation tax relief for earnings over £262,000 will help pay off the deficit and tackle the growing pay divide that has seen a tiny minority of super-rich individuals receive inflation and performance-busting pay rises while everyone else suffers real terms wage cuts."