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Could Bank Corporation Tax be on the Rise?

Ever since the new government arrangement was announced, people have been wondering how it will affect them financially.  But there is perhaps no bigger group with concerns over how the books will be balanced than the British banks.

The new Chancellor of the Exchequer George Osborne has said that he will hold an emergency Budget on Tuesday 22nd June.  The new measures being put in place to bring in some much needed revenue from the banks will be announced then.  I for one will be interested to see what those measures will be.

It has been speculated – in some instances by the banks themselves – that Bank Corporation Tax could rise.  One report stated that profits could be hard hit if the Bank Corporation Tax rate went up by 10%.  But it remains to be seen whether this is the move that will be made by the new Chancellor.

I read through the manifestos issued by both the Liberal Democrats and the Conservatives both before and after the election result, and they both had measures in place to reap more revenue out of the banks.  This will undoubtedly help to pay off some of the huge deficit that the new government has to contend with.

But it remains to be seen whether the taxes the new Chancellor will announce will be levied on the profits the banks make, or on their assets.  Both methods were mentioned in the manifestos, so I will be interested to see which of the coalition parties gets their own way.

In the meantime, if you have concerns about your own financial situation and the amount of tax your own company is paying, contact us now at St Matthew to find out how we can help.


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