Bank payroll tax, a 50% tax on bonus awards payable to employees of certain banking institutions, was introduced in the December 2009 Pre-Budget Report. Final legislation governing the tax has now been published in the Finance Bill 2010.
For the most part, the legislation included in the Finance Bill 2010 broadly follows that first made available at the time of the Pre-Budget Report, although there are key changes, the most significant of which is the more targeted definition of ‘taxable companies’ caught by the tax. A further concession is the exclusion of payments to banking employees who are not resident in the UK and have spent less than 60 days here performing banking duties.
The Finance Bill also includes further details of how the bank payroll tax is to be administered on a practical level, information regarding which was conspicuously absent when draft legislation was first released.
Our latest factsheet focuses on the above key aspects. For further information regarding the bank payroll tax, such as the nature of awards caught by the tax, please refer to our previous analysis or speak to your usual Moore Stephens contact.