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Taxing times: Sunak to slim down Bank Surcharge

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A 12-storey tower in Canary Wharf has reportedly been sold for 60 per cent less than its 2017 purchase price.
A 12-storey tower in Canary Wharf has reportedly been sold for 60 per cent less than its 2017 purchase price.

The additional tax on banks is set to slashed in the Budget, a boost for the capital’s lenders. 

The Bank Surcharge, an eight per cent top-up to corporation tax levied on banks, will be reduced to three per cent in the upcoming budget according to the Financial Times.

The Chancellor has previously signalled that the UK Government’s decision to cancel a proposed reduction in corporation tax to 17 per cent, instead hiking it to 25 per cent, meant the tax regime had become uncompetitive for British-based banks. 

The surcharge would have put tax rates up to 33 per cent, way above global rivals. 

Lobby groups will welcome the move but had previously called for the surcharge to be scrapped in its entirety. 

Treasury sources tonight refused to comment when approached by City PM