TaxCorporate TaxIncreased bank levy would have cost RBS £400m

Increased bank levy would have cost RBS £400m

Royal Bank of Scotland's financial report calculates that changes made to bank levy rate would have cost up to £400m in the last financial year

THE INCREASED BANK levy announced by chancellor George Osborne would have cost the Royal Bank of Scotland up to £400m had it been applied last year, the company’s financial report announced.

Osborne raised the levy from 0.05% to 0.1% this month, and backdated this to 1 January 2011. The bank’s report said that had the 0.1% rate been in place in 2010, this would have cost between £350m and £400m.

The part state-owned bank said its overall contributions to the government amounted to £3.9bn in 2010. The bulk of this was in taxes, including £1.5bn in direct and indirect employees’ taxes. It also paid around £1.5bn in fees, including £700m for the Asset Protection Scheme.

The bank made losses of £1.13bn last year, bigger than it expected but down on the £3.6bn loss it made in 2009, and the £24.3bn loss in 2008.

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