Taxation of the Financial Sector — Financial Transaction Tax — Banking Levy — 9 Feb 2011 at 20:39

The majority of MPs voted for a banking levy, a tax charged as a fraction of a bank's assets, and against a financial transaction tax.

The motion passed in this vote was:

• That this House
• takes note of European Union Document No. 15282/10 and Addendum, relating to financial sector taxation;
• recognises that decisions regarding direct taxes are primarily a matter for sovereign governments;
• supports the timely action the Government has already taken to introduce a permanent levy on bank balance sheets to ensure that banks make a full and fair contribution in respect of the potential risks they pose to the wider economy;
• notes that the Government continues to explore the costs and benefits of financial activities taxes and will work with international partners to secure agreement; and
• further supports the Government's position that an EU-wide financial transaction tax could lead to the relocation of financial services outside the EU.

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A UK Bank levy was introduced by Schedule 19 of the Finance Act 2011^[1]; it raises a tax on banks based on their total applicable liabilities and equities^[1].

• [1] Schedule 19 of the Finance Act 2011 which provides for the Bank Levy

Debate in Parliament | Source |