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.