UK bonus tax set to raise billions

The 50 per cent tax on banking bonuses in the UK may bring in as much as £3 billion ($4.8 billion) in revenue, it has been suggested.

Government sources told the Guardian that there have been higher-than-expected payouts made by large banks operating in the UK, meaning that initial forecasts regarding how much the levy would raise were significantly underestimated.

In December, British chancellor Alistair Darling said that he expected the one-off tax, which applies to bonuses of more than £25,000, was going to raise around £550 million.

The officially revised estimate of how much the tax will bring in will be revealed in the Pre-Election Budget in a few months' time.

At that point, it will be clear how much each bank operating in the City of London is planning to pay its staff.

Among the firms yet to reveal their remuneration levels are HSBC, Royal Bank of Scotland and Barclays.

Last week, Credit Suisse revealed it was going to cut the bonuses of its UK-based managing directors by 30 per cent, while also instigating a five per cent cut for the rest of its staff around the world to shoulder the burden of the levy.