McDermott Comment | Sunak to Cut Tax Surcharge on Bank Profits to Keep City Competitive

Kevin Cummings, UK Head of Corporate Tax at law firm McDermott Will & Emery, commented:

“Whilst clearly good news for the banks, the surcharge reduction still masks a stealthy tax hike for the banking industry, with combined rates heading to 28% from 27%.

And it’s not just the banks that are hit with surcharge. There’s a massive swathe of brokers, dealers and market makers outside the banks that are unfairly drawn into the banking surcharge, meaning UK trading firms are much more heavily taxed than their peers in Amsterdam and Singapore. That’s not great post-Brexit.”