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UK bank tax will be temporary and below 8%, Bloomberg reports
The levy will rise from 3% to 6% and run for 15 months, a smaller increase than the 8% some investors had feared.
- On Wednesday, Chancellor John Healey announced a temporary increase in the bank surcharge from 3 per cent to 6 per cent in the Budget, aiming to fund household energy support for British households.
- Banking stocks rallied as the increase remained well below the feared 8 per cent threshold, with Lloyds, Barclays, and NatWest shares rising at least 2 per cent each.
- This temporary 15-month measure reverses the 2023 strategy, when the Tories reduced the surcharge from 8 per cent to 3 per cent while raising corporation tax to 25 per cent.
- Industry bodies warn this hike could weaken Britain's global position, as banks currently face a 46.5 per cent tax rate, potentially increasing financing costs for businesses and borrowers.
- The Treasury deemed this measure necessary to address diminishing fiscal headroom while avoiding personal tax increases, positioning the temporary levy as targeted revenue to fund energy relief.
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26 Articles
26 Articles
To finance household aid, London will temporarily double the bank's profit surtax, which will rise from 3% to 6% as of January 2027.
·Paris, France
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Bank shares soared today as John Healey's tax raid on the sector was not as punishing as felt.
Evening Standard+2 Reposted by 2 other sources
Bank taxes to rise by less than some feared to help fund ‘breathing space’
Banks will pay an extra 3% on the corporation tax surcharge from January, and for 15 months.
·London, United Kingdom
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Total News Sources26
Leaning Left2Leaning Right5Center8Last UpdatedBias Distribution54% Center
Bias Distribution
- 54% of the sources are Center
54% Center
13%
C 54%
R 33%
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