BusinessCompany NewsUK to receive £2.5bn from banker’s tax

UK to receive £2.5bn from banker's tax

Banker's bonus tax could pull in £2.5bn in revenue including £1.35bn from US banks

The UK could pull in up to £2.5bn a year from the recently introduced
banker’s bonus tax.

The banker’s bonus tax was introduced last year by the former government
following public outcry at bonuses in the city. Last year banks were forced to
pay a one off 50% levy on all UK bonuses, including shares, above £25,000.

The US alone is expected to foot up to £1.35bn from banks such as Citigroup,
JPMorgan Chase and Bank of America which could see their earnings per share
reduced by as much as 10% in their April-June earnings, the
Financial
Times
reported.

John McDonald from Bernstein Research, the independent industry researchers,
reduced its estimate of earnings per share at JPMorgan to $0.66 from $0.80 due
to the UK banker’s tax.

According to the Financial Times, JPMorgan declined to comment. However,
Citigroup said its hit due to the UK levy is estimated to be $400m, Bank of
America believe it to be around $465, and analysts predict Morgan Stanley’s levy
will be in the region of $350m.

Further reading:

UK
tax to cost US banks $2bn

CGT
avoidance costing the Treasury £1bn a year, says Cameron

Boris
Johnson hits out at bank tax

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