Bankers' bonus tax hits hurdle

The plan of the British government to introduce a one-off super tax of 50 per cent on bankers' bonus

Global banks such as Morgan Chase and JP Morgan operating in the UK said they will leave the country if the government introduces the super tax.

The investment management Association (IMA) has declared that the UK's asset management industry is now exempted from the planned tax.

A revision by the country's Revenue and Customs (HMRC) authority "clearly states that the final legislation will ensure that asset and fund management firms will not be liable to pay this tax," noted Richard Saunders, chief executive of the IMA.

Now, a pan-European law to curb bankers' remuneration that is being considered by the EU Council of Ministers and the European Parliament is feared to face such hurdles.

However, some policymakers think this plan will lose currency once national governments start enjoying the extra revenues from banks that relocate to their countries.