David Jetuah, Accountancy Age, Tuesday 13 July 2010 at 10:36:00

Banking industry may have to weather a financial activities tax on top of thelevy announced in the emergency budget


The banking industry is in the sights of the UK government again afterTreasury officials warned that the sector could be hit with another tax.

George Osborne has already announced a banking levy on the balance sheets offinancial institutions in the emergency Budget, but the sector could now be hitagain with a raid on profits and bankers' wages.

The Financial Activities Tax could raise an extra 2.5bn,theTelegraph reported.

In a speech to the BBA on Monday, Mark Hoban, the financial secretary to theTreasury warned that options were being considered.

"We will explore the costs and benefits of a Financial Activities Tax onprofits and remuneration, and we will ask the FSA to examine further options inthe forthcoming review of its remuneration code."

Further reading:

IMFplans for bank tax panned by global finance community