Accountancy Age, Accountancy Age, Thursday 15 July 2010 at 13:04:00

Taxman wants to encourage banks to reduce their risks with 2bn levy

HMRC has released details on its 2bn bank levy which aims to curb the excessive risk taking which contributed to the crisis.

The levy, will apply to only the largest banks with liabilities totaling more than 20 billion.

HMRC hopes to encourage banks ?to adjust their balance sheets to reduce [their] risk,? according to the consultation document released today.

?It is fair and it is right that banks should make an appropriate contribution, which reflects the many risks they generate. Excessive risk taking in the banking sector was a significant contributory factor in the recent financial crisis,? the body said in the consultation document.

Further reading:

Success of bank levy scheme hangs on G20

Emergency Budget: Bank levy will raise 2bn