Banks face a 33% corporation tax rate following Jeremy Hunt’s reversal of the ‘mini budget’ tax cuts

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Banks are facing the prospect of a 33 percent corporate tax rate after Jeremy Hunt canceled a “mini budget” tax cut.

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Banks are facing the prospect of a 33 percent corporate tax rate after Jeremy Hunt canceled the “mini budget” tax cut.

Creditors were reported to have been negotiating with the Treasury yesterday after the new chancellor failed to mention a so-called bank surcharge that was to be lowered by the corporate tax increase.

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After the 2008 financial crisis, creditors faced an additional tax of 8% on top of corporate tax. As recent chancellors fiddled with the corporate tax baseline, they tried to keep the burden on the banks even by adjusting the level of the bank surcharge.

But Hunt did not mention the surcharge in his statement yesterday as he rolled out Kwarteng’s policy of keeping corporate tax at 19 percent.

This could mean that banks face a corporate tax hike of up to 25% and an 8% surcharge, bringing the overall tax rate to 33%. A Treasury spokesman said the ministry is “clearly aware” of the pressure this could put on creditors.

Credit: www.thisismoney.co.uk /

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