U.K. tax authorities review bank levy amid clearing concerns

08/20/2013 | Risk.net (subscription required)

Banks are raising concerns that the U.K.'s new bank balance sheet levy will put their clearing businesses at a disadvantage. Tax authorities in Britain are working to avoid a policy clash between the new tax and the movement to over-the-counter derivatives clearing. "Where banks act as a clearing member -- essentially a middleman between the client and clearinghouse -- they may incur liabilities to the client that would be subject to the bank levy unless there are changes to the current rules," according to a spokesman for HM Revenue & Customs.

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