The chancellor has warned that the financial sector must abide by the letter
and the spirit of the law when it comes to paying tax.
In announcing a permanent levy on the sector in the comprehensive spending
review, George Osborne said that the banks would have to pay their fair share
into the UK’s coffers.
“Those with the broadest shoulders should bear the greatest burden. Those
with the most should pay the most, including our banks,” Osborne said.
“We neither want to let banks off making their fair contribution, nor do we
want to drive them abroad,” Osborne added.
The British Bankers Association said the announcement of a permanent levy was
not unexpected, but warned that financial institutions – particularly overseas
banks – would now be considering whether to stay in the UK.
“Financial services currently contribute around £24bn in taxes every year,”
the BBA said.
“To remain competitive we need to ensure UK policies are in step with those
“Decisions taken today will have an effect on the whole industry and
particularly on overseas banks operating in the City: they are likely to look to
their tax bills and what is to be paid here and at home when deciding on their
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