View more on these topics

Warning high taxes could quicken post-Brexit bank departures

Banking lobbyists have warned that UK banks currently face higher tax rates than international counterparts, and that these could hasten banks’ departures if they remain after Brexit.

Reuters reports that research commissioned by UK Finance and carried out by consultancy PwC shows London banks face an effective tax rate on profits of 50.6 percent, above the 43.8 percent in Frankfurt, and 34.2 percent in New York.

There is also a more than 20 per cent gap between London and the lowest taxers, Singapore and Dubai, at 23.2 percent and 22.7 percent respectively.

UK Finance chief executive Stephen Jones says: “At a time when domestic and international events are forcing many banks to restructure their global operations, it is important to consider the UK’s competitiveness relative to other leading financial centres.

“This report shows that the UK’s tax competitiveness has been substantially eroded relative to other financial centres to which globally mobile corporate and investment banks based here could relocate.”

Estimates have been made that around 10,000 bank jobs could head to Frankfurt, while the FCA has recognised that European bodies are actively trying to lure financial institutions to relocate in the wake of Brexit.

Recommended

34

FOS tells Lighthouse to refund advice fee

The Financial Ombudsman Service has told an adviser to refund a client’s £970 advice fee and pay 8 per cent interest, plus £500 compensation, after it refused to sign a form declaring advice had been given. In the case, a client referred to as Mr B was advised by Lighthouse Advisory Services to transfer two existing […]

Wells Street Journal: Pensions Regulator lobs a rotten Nest egg

Much has been made of the Government’s taxpayer funded campaign encouraging voters to back remaining in the EU. The Leave side predictably went ballastic when details emerged of the 14-page booklet sent to every household in the UK at a cost of £9m. Leading Brexiteers Boris Johnson and Nigel Farage also presumably received the handy […]

4

Which financial services names have made the Rich List?

Peter Hargreaves has jumped to 42nd position on the Sunday Times Rich List, a climb of nine places from last year, after seeing his wealth grow £849m to £3.2bn. Hargreaves is no longer on the Hargreaves Lansdown board but has kept a 32.2 per cent stake in the company – the value of which has […]

Five advice market predictions for 2019

Leading lights of the planning, pensions and investment space share their best guesses for how advice will evolve in the year ahead Cash will (initially) be king At the start of 2019 the temptation to move into cash will be very strong indeed for clients approaching or in retirement as market volatility and the uncertainty […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. This can`t be right as Jeremy Corbyn states the banks aren`t paying enough tax.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com