US banks 'to pay out $2bn in UK bonuses tax'

18 June 2010

American banks will pay out a combined total of around $2 billion as a result of the UK's tax on banking bonuses.

This is an estimate from the Financial Times, which stated Goldman Sachs alone will contribute more than $600 million.

Earlier this week, John McDonald of Bernstein Research told clients that JPMorgan is also going to be hit hard by the levy, forecasting that it will have to fork out a sum in the region of $525 million.

Citigroup has said it will pay around $400 million, while Bank of America is looking at a bill of $465 million.

The one-off tax was introduced by former chancellor Alistair Darling last December and requires banks to pay a 50 per cent levy on all bonuses paid out in the UK of £25,000 ($37,000) or more.

Earlier this week, a European Parliament committee put forward proposals to cap bonuses at a maximum figure equivalent to 50 per cent of a banker's salary.

By Gary Cooper

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