Shock as banks told to payback an extra £4billion taxes in next five years
BANKS will pay an extra £4billion in taxes during the next five years after a change to rules allowing them to offset past losses in the financial crisis against profits.
Existing rules meant some banks might not pay tax for 15 to 20 years
The move, unveiled in the Autumn Statement, was called "unexpected and significant" by Jonathan Richards, a director at accountants EY.
Chancellor George Osborne said the existing rules meant some banks might not pay tax for 15 or 20 years.
"The banks got public support in the crisis and they should now support the public in the recovery," he added.