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Written question asked by Stewart Hosie (Scottish National Party) on Thursday, 13 July 2017, in the House of Commons. It was due for an answer on Tuesday, 18 July 2017 (named day). It was answered by Mel Stride (Conservative) on Tuesday, 18 July 2017 on behalf of the Treasury.

Bank Levy

Question

To ask Mr Chancellor of the Exchequer, what estimate he has made of the annual yield to the Exchequer of reversing the rate reduction of the Bank Levy introduced in 2015.

Answer

There was a one off Banker’s Bonus Tax in 2009-10 aimed at encouraging banks to rebuild their financial base in the wake of the financial crisis.

Since 2010, the government has been clear that banks should make a fair contribution to the Exchequer. For that reason, in 2011 the government introduced the bank levy, a tax on banks’ balance sheets that has so far raised £14.3bn. In 2015 the government set out a long term plan for bank taxation, announcing the introduction of an 8% bank corporation tax surcharge alongside reform of the levy. The OBR forecast that these two measures will raise £18.9bn over the next five years.

Secondary information

Type
Written question
Reference
4783
Session
2017-19
Grouped for answer
Yes
Subjects
Tax rates and bands Tax yields Bank levy
Contains statistics
Yes
Link
View this Written question on www.parliament.uk