The Treasury has backed away from controversial plans to apply the 50 per cent supertax on bank bonuses to those awarded to investment and hedge fund managers working within banks.
The Treasury has backed away from controversial plans to apply the 50 per cent supertax on bank bonuses to those awarded to investment and hedge fund managers working within banks.
HM Revenue and Customs is clarifying the tax proposals unveiled this week in Alistair Darling’s pre-Budget report after an outcry from banks with big asset management subsidiaries, such as JPMorgan.
New wording is expected shortly from the Revenue, which has been working with the Investment Management Association to reassure asset managers that they are not caught by the new payroll levy.
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“The policy intent is to catch banking,” a Treasury spokesman said yesterday. The 50 per cent levy on any bank paying bonuses of £25,000 or more was not intended to apply to hedge fund managers or asset managers within banks if they operated independently of the rest of the bank.
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