United Kingdom

Details

  • Industry: Financial Services
  • Type: Press release
  • Date: 05/12/2013

Autumn Statement 2013: Bank levy could hit banks supporting real economy 

  • Sixth consecutive rise, with levy rate tripling since 2011
  • Code of Practice also strengthened with power to name and shame

 

Thursday 5th December 2013

 

Andrew Seagren, financial services tax director at KPMG, commented:

 

“The bank levy has risen for the sixth successive time making the main rate now three times the initial rate introduced in 2011. However, Office for Budget Responsibility forecasts indicate that projected levy revenues remain unchanged from March 2013. The reality is that revenues have consistently undershot forecasts and the government is raising the rate to compensate.   

 

“The bank levy is calculated as a percentage of a bank’s balance sheets. As balance sheets shrink, it is not surprising that revenues are lower than expected. The real concern is that the levy will fall increasingly on banks that do not shrink their balance sheet and are supporting the real economy by increasing lending.

 

“Also announced today is a list of banks that have signed up to the Code of Practice on the Taxation of Banks. HMRC will be encouraged that many banks have signed up.  However, HMRC’s new powers to ‘name and shame’ where they perceive there to be non-compliance is causing concern, especially with inward investors. Time will tell whether the safeguards intended to prevent unwarranted reputational damage will work in practice.”

 

-Ends-


 

Follow us on twitter: @kpmguk #AS2013

 

www.kpmg.com/uk/autumnstatement

 

For further information please contact:

 

KPMG Press office

 

Tel:  +44 (0) 207 694 8773

 

Monica Fiumara, KPMG Corporate Communications

 

Mobile: 07901105180

 

monica.fiumara@kpmg.co.uk

 

About KPMG:

 

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.

 

 

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