Bonus tax will not apply to all financial services workers

The Investment Management Association (IMA) has welcomed the news that the new bankers bonus tax will not apply to everyone working in financial services jobs.

Confusion surrounded who would be hit by the tax proposed by Alistair Darling in the Pre-Budget Report, with many fearing it would apply to everyone in the financial services industry.

HM Revenue & Customs (HMRC) has now responded to representations from interested parties by issuing a clarification of the definition of what kind of organisation will be regarded as a bank for the purposes of the tax.

It will not apply to financial services companies outside banking groups, so those working for insurance, stock broking or asset management businesses will not be affected.

Richard Saunders, the IMA's chief executive, said he was pleased with HMRC's announcement, but warned that more discussions were needed to ensure the tax is only applied to those it is intended for.

"We look forward to a continued constructive dialogue as the detailed legislative language is developed," he added.

Updated: 21 December 2009.
Categories: banking-and-financial-services, market-and-industry-news.