Bank profit tax cut

[BaronSmoggie]

Sunak to slash tax on bank profits just weeks after National Insurance hike (thelondoneconomic.com)

I have to say, this stings. The general public hit with a 1.25% increase in NI with a freeze on raising the tax threshold for 5 years and increasing costs and rising inflation. This cannot be justified.

Maybe because I'm up early, tired and a bit grumpy but this really has ticked me off.

 

[Cuthbert]

Banking is obviously a pretty important part of the UK economy. Reading the article, the reduction on the tax surcharge is to keep the UK on par with other countries, to remain competitive.

I agree with you that any tax reduction for the banking sector is pretty unpalatable, but I guess that's the reason.

The bit at the end was a slight comfort... (from the article):-

"Instead, from 2023, their combined rate will rise slightly to 28 per cent — 25 per cent corporation tax plus a 3 per cent surcharge"

(Instead of the 8 per cent surcharge currently).

 

[BaronSmoggie]

Thank you for the balanced reply, like I said I was up at 4am today so not fully aware . Is the government worried about the banks leaving if the charge was left the same, I'd say not personally.

 

[Cuthbert]

Thank you for the balanced reply, like I said I was up at 4am today so not fully aware . Is the government worried about the banks leaving if the charge was left the same, I'd say not personally.

I reckon they would be worried about banks leaving. Certainly if the UK remained uncompetitive for a long time... but who knows!

 

[Zoophonic]

Definitely worried. So far 440 financial services firms have moved some or all of their jobs out of London because of Brexit, along with around £900bn in bank assets (roughly 10% of the entire UK banking system). And this is just the start.

Dublin is the winner. 135 firms have chosen the Irish capital as their post-divorce location, followed by Paris with 102 firms, Luxembourg with 93, Frankfurt on 62, and Amsterdam on 48.

 

[BaronSmoggie]

Definitely worried. So far 440 financial services firms have moved some or all of their jobs out of London because of Brexit, along with around £900bn in bank assets (roughly 10% of the entire UK banking system). And this is just the start.

Dublin is the winner. 135 firms have chosen the Irish capital as their post-divorce location, followed by Paris with 102 firms, Luxembourg with 93, Frankfurt on 62, and Amsterdam on 48.

This isn't about Brexit though, I was asking if the tax cut wasn't coming, whether that would make firms move out of the UK considering they've been paying it up until this point.

 

[Zoophonic]

This isn't about Brexit though, I was asking if the tax cut wasn't coming, whether that would make firms move out of the UK considering they've been paying it up until this point.

I do get your point but I believe there is a connection yes. Such as a sweetner for the City in the face of the issues financial services face in the new environment.

 

[NYboro]

This isn't about Brexit though, I was asking if the tax cut wasn't coming, whether that would make firms move out of the UK considering they've been paying it up until this point.

It absolutely is about Brexit. The Government is desperate to try and prevent the exodus to the EU, given that it's unlikely that any agreement can be struck to allow UK-based banks to provide services within the EU.

 

[BaronSmoggie]

It absolutely is about Brexit. The Government is desperate to try and prevent the exodus to the EU, given that it's unlikely that any agreement can be struck to allow UK-based banks to provide services within the EU.

No, its not and please don't make it about it, we have enough threads on that already. I'm focusing on the issue of taxation here.

 

[NYboro]

No, its not and please don't make it about it, we have enough threads on that already. I'm focusing on the issue of taxation here.

Your point being? What reason do you see for them cutting the level of taxation?