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UK bank tax will be temporary and below 8%, Bloomberg reports - Finance news and analysis from Global Banking & Finance Review
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UK bank tax will be temporary and below 8%, Bloomberg reports

Published by Global Banking & Finance Review

Posted on October 28, 2026

1 min read

· Last updated: October 28, 2026

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UK Finance Minister Set to Temporarily Raise Bank Tax Surcharge Below 8%

Temporary Bank Tax Surcharge Increase Announcement

Details of the Bank Tax Surcharge Adjustment

LONDON, Oct 28 (Reuters) - British finance minister John Healey will on Wednesday announce a temporary bank tax increase of less than 8%, Bloomberg reported.

Current and Previous Surcharge Rates

Healey will increase the bank surcharge, which is currently levied at 3% on top of the 25% corporation tax rate, but will not return it to the 8% level it had stood at until 2023, Bloomberg reported citing people familiar with the matter.

Market Reaction to the Announcement

British banking stocks rose after the report, with Lloyds, Barclays and Natwest all up at least 2%.

Reporting Credits

(Reporting by Sam Tabahriti; writing by Yoruk Bahceli, editing by William James)

Key Takeaways

  • Healey plans a temporary increase in the bank surcharge, currently at 3%, but will keep it below the pre‑2023 level of 8% (news.bloomberglaw.com).
  • Reversing the full surcharge cut could raise significant revenue, though the return to 8% has been weighed against concerns over economic competitiveness and lending impacts (news.bloomberglaw.com).
  • UK banking stocks—including Lloyds, Barclays and NatWest—rose by at least 2% following the Bloomberg report on the expected surcharge adjustment (uk.marketscreener.com).

References

Frequently Asked Questions

What is the current UK bank surcharge rate?
The current UK bank surcharge rate is 3% on top of the 25% corporation tax rate.
Will the bank tax return to the previous 8% level?
No, the bank tax will increase but will remain below the former 8% level.
Which British banks saw their stocks rise after the report?
Lloyds, Barclays, and Natwest stocks all rose at least 2% after the report.
Who will announce the UK bank tax increase?
British finance minister John Healey will announce the bank tax increase.

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