Tom Aston, head of banking tax for KPMG in the UK, commented: “One of the government’s main reasons for introducing the Bank Levy was to encourage banks to reduce their risk profiles following the financial crisis. However, rather than helping to reduce risk in the sector the Bank Levy is draining profits out of the banks and undermining their efforts to strengthen their capital base.
“Looking ahead, the changes to the Bank Levy rules and future rises in the rate of the Levy already announced will increase the overall tax charge facing banks, heaping further pressure on this sector. There is little doubt this is reducing the attractiveness of the UK operating environment for the world’s largest banks as they consider where to invest in the medium term. We hope that the consultation to be released next week will take account of competitiveness concerns.”
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KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 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. Each KPMG firm is a legally distinct and separate entity an