Lloyds Banking Group PLC and sector peers rise after banking profits surcharge
Having announced plans to hike corporation tax, the UK’s finance minister said the government planned to review whether to rescind or amend the surcharge on banks’ profits
Banking shares were in demand after the chancellor of the exchequer, Rishi Sunak, said the government is reviewing the current surcharge on bank profits.
The decision to review the tax was taken in the wake of the announcement in today’s Budget speech of a planned hike in corporation tax to 25% by 2023 from 19% presently for UK companies with annual profits of more than £250,000.
Shares in () were up 3.9% at 168.54p; PLC () was 2.5% higher at 39.85p and PLC () was 2.1% firmer at 189.45p.
Asia-focused but UK-headquartered banks Holdings PLC () and () also attracted buying interest, with the former hardening 1.6% to 430.7p and the latter rising 3.8% to 500.8p.
The government expects to reveal the results of the review into the surcharge in the autumn.
“by stating that the current UK bank surcharge (of 8%) would be reviewed – the aim being that the combined rate of UK tax on the UK banking sector should not increase significantly from its current level. #Budget2021
— Eversheds Sutherland (@ESgloballaw) March 3, 2021
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