Treasury confirms that 35 bank groups and building societies will avoid sector-specific surcharges entirely
TSB, Co-operative Bank and Leeds Building Society are among the lenders expected to escape a levy imposed on the sector, following the chancellor’s announcement of a £4bn City tax cut in his budget speech on Wednesday.
Rishi Sunak said the government would increase the proportion of profits exempt from the bank surcharge from £25m to £100m from April 2023. It means the first £100m of any bank’s earnings will avoid the sector-specific tax, which is also due to drop from 8% to 3% that year.
