Summary Box: UK seeks $4B a year from bank tax

AP News
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Posted: Oct 21, 2010 4:57 PM
Summary Box: UK seeks $4B a year from bank tax

POUND OF FLESH: The British government published draft legislation for a permanent tax on banks that is expected to raise about 2.5 billion pounds ($4 billion) a year by 2014.

HOLDING THE LINE: The government wants to steer banks toward stable sources of funding like long-term debt and equity. The tax would be levied on liabilities and some types of equity assets.

ACROSS THE POND: What is not known is how the tax would affect the 200 foreign banks operating in Britain. There are concerns that banks will soon be taxed multiple times in multiple jurisdictions for the same activity.