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Hunt To Cut Surcharge On UK Bank Profits From 8% to 3% - BBG

  • Bloomberg reports that Chancellor Hunt will cut a surcharge on UK bank profits, effectively shielding them from the bulk of a planned increase in the corporate tax rate, according to two officials familiar with the matter.
  • Banks currently pay a 8% surcharge on profits on top of corporation tax of 19%. With the corporation tax rate due to be increased 6pps to 25%, the proposed 5pp reduction to a 3% surcharge claws a lot of this back.
  • The day’s solid climb in EURGBP pauses on the news, dipping a few pips to 0.882 (+1.1%).

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