Challenger banks want UK Treasury to ease tax
(14 September 2015 – Britain) Executives from challenger banks met with senior Treasury officials on Friday, asking that the Funding for Lending Scheme be extended past its expiry date next January.
The banks requested an extension to the government’s flagship industry funding scheme during a meeting at which they expressed their anger over Chancellor George Osborne’s plans for an 8% Corporate Tax surcharge on profits of more than £25 million (A$54 million).
Metro Bank, Close Brothers, Paragon Bank, Secure Trust Bank and Tesco Bank were among those represented at the meeting according to reports.
It has been reported that Treasury was resistant to the idea of a blanket increase in the £25m threshold, but more receptive to a proposal for 'staircasing' the impact of the tax depending on the size of banks' balance sheets.
Research by accounting firm EY suggests the forecasted net tax gain of £1.66 billion by Treasury is likely to be "vastly understated" and that the new surcharge could "easily" take double the predicted takings.
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