LONDON (Alliance News) - There is an expectation that Chancellor George Osborne will set out plans to phase out the GBP3.5 billion bank levy when he delivers his annual Mansion House speech on Wednesday evening, The Times reported Wednesday.
According to the report, the UK's economic and finance ministry is expected to replace the bank levy with a new corporation tax surcharge.
Unlike the bank levy, which is imposed on global balance sheets, the new tax would apply on to banks' assets in the UK.
The bank levy has been a frustration for banks like HSBC Holdings PLC and Standard Chartered PLC, both of which conduct the bulk of their business outside the UK, meaning they have a cost that rivals in their markets do not. The report in The Times said that Barclays PLC, Lloyds Banking Group PLC and Royal Bank of Scotland Group PLC could contribute a greater share under the new tax plans.
Osborne's speech will also include further details of his plans for returning Royal Bank of Scotland Group PLC, in which the government still owns an 80% stake following the GBP45 billion bailout of the financial crisis, to the private sector.
According to the Times, Osborne is likely to announce the launch of feasibility studies into that process.
http://www.thetimes.co.uk/tto/business/industries/banking/article4465572.ece
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Barclays (BARC)
Lloyds (LLOY)
HSBC Holdings (HSBA)
Standard Chartered (STAN)