Any banking experts out there?

I\’ve asked this before but still lacking an answer, will ask again.

Just in case there\’s a banking tax expert who reads this.

I\’ve got wandering around the back of my mind the thought that Gordon Brown changed the way that bank provisions (for loan losses) were taxed at some point.

He thought they were over-provisioning and thus dodging tax or something. So he made it less attractive for them to make such provisions.

Anyone able to point me to the exact bit where he did that?

1 thought on “Any banking experts out there?”

  1. from The Times, 2nd december, 2005:

    Banks used to make provisions against predicted loan losses, which, unlike on the Continent, were not tax deductible in the UK. Under IAS, they must only report actual provisions against actual loans in default. So some general provisions will be replaced by specific provisions, apparently reducing the tax charge. Not if Mr Brown has anything to do with it. It seems he wants to use the opportunity to take an extra £1 billion in taxes from the banks. It would be a windfall tax in all but name and, not surprisingly, the banks have been fighting against such a move.

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