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LONDON, Sept 7 (Reuters) - Ten of Britain's biggest bankscould pay almost 6 billion pounds ($9.2 billion) a year betweenthem in tax as a new surcharge on profits is phased in,accounting firm EY said on Monday.
British Finance Minister George Osborne said in July heplanned to replace an existing levy on bank balance sheets withan 8 percent charge on profits, alongside a pledge to keepBritain a "highly attractive" location for banks.
But a study by EY, published on Monday, said because thesurcharge will be introduced before the levy is phased out thiswould hit some banks hard.
"2016 and 2017 are going to be the most painful years forall those banks that pay bank levy, and UK retail banks will behit hardest," EY said.
The bank levy was introduced in 2011 in response to thefinancial crisis. Banks have said the levy is unfair as itbecomes more punitive when profitability falls.
The government has forecast revenues from bank taxes willrise to 4.3 billion pounds in 2017/18 as the surcharge isintroduced, but then fall to 3.5 billion by 2020/21 as the levyis phased out. The levy is due to be 3.7 billion pounds forcurrent financial year.
But EY's study said the government could receive total taxrevenue of 5.95 billion pounds from 10 of the biggest banks.
($1 = 0.6552 pounds) (Reporting by Steve Slater. Editing by Jane Merriman)
