British banks slam UK Treasury's bank levy plan

London

BRITAIN'S banks have criticised the UK Treasury's plan to pare back the scope of the bank levy to lenders' domestic businesses only, warning that international operations could still be subject to taxation after the changes.

Under the government's current proposal, funds raised at a UK holding company level and then passed down to an international subsidiary would continue to count towards the tax, the British Bankers' Association (BBA) said in a letter to Her Majesty's Revenue & Customs. The lobby group said this structure "conflicts with the Chancellor's stated aims to make sure the levy no longer catches worldwide balance sheets".