According to PwC, the fall in share prices is likely to cost between £1.5bn and £2bn in lost stamp duty, capital gains tax and tax on banks’ and brokers’ profits.
The economists also said that factors that had helped prop up revenues in the past, including housing and oil prices might not be so helpful next year.
This is likely to mean Brown will have to borrow more than the forecasted £24bn as predicted by the chancellor in November in his pre-Budget report.
PwC puts this figure at closer to £30bn.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements