PBR: Banks subject to 50% levy on bonuses

Banks will be subjected to a one-off levy of 50% on any bonuses above £25,000.

Darling, who estimates the levy will raise £0.5bn, adds the levy will be paid for by the bank and not the employee. The Chancellor said banks lost £80bn last year and, despite widespread rumours, has decided against a windfall tax. He said banks have a choice - to use profits to build up their capital base, or, if they use it for bonuses, to give a large sum back to the taxpayer. More to follow...