Bank levy rates to rise early - Banking - News - Moneyfacts

News

Bank levy rates to rise early

Bank levy rates to rise early

Category: Banking

Updated: 08/02/2011
First Published: 08/02/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Chancellor has revealed the rate of the bank levy to be charged in 2011 is to be increased earlier than previously anticipated.

With the banks all set to reveal their employee bonus payments, George Osborne has decided to bring forward the tax in a move which will raise the revenue the levy raises this year by £800 million.

The Government initially announced that a reduced rate of 0.05% would apply in 2011, in recognition of the uncertain market conditions which prevailed at the time.

However, it now says it no longer considers this necessary.

As a result, from 1 March the rate of the levy will be 0.1% for two months, to offset the lower rate of 0.05% charged in January and February, before moving to 0.075%.

Explaining the reasons behind the move, the coalition said the Bank of England had recently noted that the near-term outlook and resilience of the UK banking sector has improved.

It added that the markets also now had more certainty as the timing and direction of certain regulatory changes had been confirmed.

The increase in the levy means that it will raise £2.5 billion in 2011, the same as the target revenue for future years.

More than £10 billion is expected to be taken from the banks through the tax over the next four years.

Find the best financial information for you -Compare Financial Solutions


Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Simple measures to improve banking security

The payments industry is gearing up for some big changes in the near-future, with the announcement of some key improvements that should help all of us be more secure when banking online.

Top cashback deals for festive rewards

Savvy shoppers will no doubt be looking to make the most of their hard-earned cash at this time of year, but there isn’t much time left to work out which are the good deals and which are the bad, so it’s time to take action!

Top cashback deals for festive rewards

Savvy shoppers will no doubt be looking to make the most of their hard-earned cash at this time of year, but there isn’t much time left to work out which are the good deals and which are the bad, so it’s time to take action!
 
Close