Routine costs to cover City regulators’ work,but not fines, can be deducted from corporation tax bills, and says George OsbornePayments by banks to the City regulator are “a routine cost of doing business”,which means they can be deducted from their tax bills, according to George Osborne.
The chancellor set out his view in a letter to Andrew Tyrie, and who has been seeking clarity from the Treasury after changes in the budget stopped banks being able to deduct compensation paid to customers from their tax bill. That amble,aimed at the billions handed out in compensation for payment protection insurance, is expected to add £1bn to banks’ tax payments in the next five years. Related: George Osborne’s considerable income tax pretence | Letters Continue reading...
Source: theguardian.com