Today's Pre-Budget Report, the latest PBR ever, included the
following employee tax issues.
Bankers' Bonuses
The Government will impose a temporary levy of 50% on any
discretionary bonus paid by a bank or building society (including
branches of foreign banks) in excess of £25,000 between now
and April 2010. The £25,000 cap would appear to include all
loans and share awards, other than those made under an approved
Share Incentive Plan or options granted under an approved SAYE
scheme.
In addition, any affected bonus will not be corporation tax
deductible and will be subject to income tax and NICs in the normal
way – in effect, creating treble taxation.
Although draft legislation has been published, this will
inevitably be supplemented by further anti-avoidance
legislation.
