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ARTICLE · 30 SEPTEMBER 2026

UK ‘Windfall’ Bank Tax Would Worsen An Already Complex System

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UK banks face the prospect of a new windfall tax as campaigners push for additional levies on strong reported profits, while industry leaders warn of potential consequences for lending, investment, and the UK's position as a global financial centre. This analysis examines the practical implications of adding another layer to an already complex sector-specific tax regime that includes corporation tax, banking surcharge, and bank levy.

United KingdomTax
Adam Craggs
Adam Craggs
Jasprit Singh
Jasprit Singh

The prospect of a new tax on UK banks is back on the political agenda. Campaigners are calling for a “windfall” tax following strong reported profits from the UK’s largest banks, while industry representatives have warned that additional taxation could affect lending, investment, and the UK’s competitiveness as a financial centre.

This blog is based on an article written by Adam Craggs and Jasprit Singh that was published in Bloomberg Tax on 25 August 2026. Copyright 2026 Bloomberg Industry Group, Inc. (800-372-1033) www.bloombergindustry.com. Reproduced with permission.

Introduction

Any new tax measures would sit alongside other existing taxes. UK banks currently pay corporation tax at 25%, a 3% banking surcharge on relevant profits above the £100 million ($135.6 million) group allowance, and the bank levy (which is expected to raise around £1.4 billion in 2025/26).

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