April 2023
Dear Constituent,
Thank you for writing to me about a proposed ‘windfall tax’ on banks.
I am not aware of any Government plans to introduce a windfall tax on banks.
Banks, like other large corporations, pay corporation tax on their profits. The Corporation Tax rate will rise from 19 per cent to 25 per cent this year.
In addition, banks already face two further taxes. The Bank Corporation Tax Surcharge is an additional charge on banking profit above a set allowance, and the Bank Levy is charged on banks’ balance sheets with equity and liabilities over £20 billion. Since the introduction of the Bank Levy in 2011, these two taxes have raised over £33 billion in additional revenue from the banking sector.
I understand that the Government keeps all taxes under review and careful consideration is given to proposed amendments to the tax regime. Any changes to tax rates will be communicated in the budget in the usual way. I will be sure to pass on your suggestions to my colleagues at the Treasury.
Thank you again for writing to me.
With best wishes.
Kind regards,
Jonathan Lord MP
Member of Parliament for Woking