Treasury sets bank levy higher than expected

Treasury sets bank levy higher than expected

Bank levy will be charged at 0.05% rather than the expected 0.04%, rising to 0.075% in 2012

THE TREASURY has been forced to raise the tax rate on risky assets higher than expected as it struggles to hit its £2.5bn target from a banking levy.

The levy, which applies to wholesale liabilities over £20bn, will now be charged initially at 0.05% instead of the expected 0.04%. This will rise to 0.075% in 2012 as the government tries to force banks to hold less risky assets on the balance sheet.

“The government believes that banks should make a full and fair contribution in respect of the potential risks they pose to the UK financial system and wider economy,” said Mark Hoban, financial secretary to the Treasury.

“The levy has been designed to encourage less risky funding and complements the wider agenda to improve regulatory standards and enhance financial stability.”

It is thought that the largest British banks will have to pay out more than £200m each due to the levy

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource