a bit more than ?30...

a bit of the detail on the bank tax:

The Government today announces that where bank (and building society) employees are awarded
discretionary bonuses, in whatever form, above ?25,000 in the period from the Pre-Budget Report
to 5 April 2010, the banks paying these bonuses will pay an additional bank payroll tax of 50 per cent
on the excess bonus over ?25,000. The tax will not be deductible in computing the taxable profits
of affected companies. This tax will encourage banks to consider their capital position and to make
appropriate risk adjustments when settling the level of bonus payments above the threshold, which
is at the level of median earnings in the UK. If banks choose to make awards that are not consistent
with a prudent approach to risk, it is only fair that they contribute more to the public finances, in a
year when profits have been facilitated by significant taxpayer support for the banking sector as a
whole.
It is intended that in the longer term, remuneration practices will be changed as a result of corporate
governance and regulatory reforms, as outlined later in this chapter. The one-off bank payroll tax
will apply until 5 April 2010, but the Government will consider extending the period of the charge
so that the tax remains in place until the relevant provisions of the Financial Services Bill come into
force. Where there is evidence of avoidance schemes being put in place, the Government will take
action to close those schemes.

Posted By: Ralf Scrampton on December 9th 2009 at 14:10:27

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