Bank Levy

Mark Joscelyne, Tax Partner, CMS

Finance Bill 2012 will increase the bank levy to 0.105 per cent. (0.0525 per cent. at the half rate) with effect from 1 January 2013. This increase is intended to off-set the benefit to banks of the reduction in the rate of corporation tax and to ensure that the bank levy raises its target revenue of £2.5 billion per year.

As announced in the Autumn Statement, Finance Bill 2012 will also increase the rates to 0.088 per cent. and 0.044 per cent. with effect from 1 January 2012 in order to ensure that the bank levy raises its target revenue.

2 thoughts on “Bank Levy”

  1. Has the Government considered whether it has achieved any of its original policy aims (being to reduce the risk of bank balance sheets) and therefore should be receiving an amount below its original £2.5bn target? i.e. should the rates have gone up this time?

    1. I rather suspect the political desire to hold back the reduction in the CT rate from banks took precedence over any such objectivity

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