LONDON, Dec 3 (Reuters) - Britain's blue-chip index extendedits losses in afternoon trade on Wednesday, led lower by thebanking sector after the UK government announced a tightening oftax rules in the sector.
Shares fell after UK finance minister George Osborne saidthere would be reduced tax allowances for banks. This will raise4 billion pounds ($6.27 billion) over next five years, Osborneadded.
The FTSE 350 Banking Index extended losses andwas down by 0.6 percent by 1305 GMT. Barclays was downby 1.4 percent, Lloyds fell 0.3 percent and Royal Bankof Scotland was down by around 1 percent.
Britain's FTSE 100 was down 0.3 percent at 6,719.62points at 1309 GMT.
($1 = 0.6378 British Pounds) (Reporting by Alistair Smout and Sudip Kar-Gupta; Editing byFrancesco Canepa)