Richard Milnes, UK Banking Tax Partner at EY, comments on the banking surcharge announced at the Chancellor’s Autumn Statement:
“The UK banking sector will be reassured that there’s now clarity around the banking surcharge and that the rate will stay at the enacted 3% when corporation tax increases to 25% next April. The sector will be particularly relieved there won’t be a further tax burden placed on it which could have detrimental effects to UK banking competitiveness on the global stage.”
Ralf Eckert, EMEIA Financial Services Tax Leader at EY, adds:
"Banks headquartered outside of the UK will have been monitoring the changes and announcements to UK taxation levels with interest over recent months. Given the cross-border nature of banking, competition is always a factor to be taken into consideration, and with the UK settling on a decision today, the major financial markets in Europe with lower overall tax rates for banks will likely pay close attention to how the UK market reacts."