Clegg pushes for a tax raid on the super-rich as OECD warns Britain is 'back in recession'

[dipsydoodle]

Source: Daily Mail

Bankers will be hit with tax hikes in next week’s mini-Budget as the Coalition insists those with the ‘broadest shoulders’ must bear the greatest burden of paying off the national debt.

George Osborne is preparing a fresh raid on the financial sector to help fund a scheme to help the young and jobless, senior Government sources say.

Nick Clegg, whose party has been pushing for measures to tax the rich, signalled yesterday that they will be included in a growth review, due on Tuesday.

Over the last year and a half we’ve increased capital gains tax, we’ve slapped on a big bank levy, we’ve made sure that the loopholes that the wealthy enjoy are closed.



Read more: http://www.dailymail.co.uk/news/article-2066399/Nick-Clegg-pushes-tax-raid-super-rich-broad-shouldered-bankers-face-hit.html

[dkf]

1. What's the point in recapitalizing the banks just to drain them again?

[muriel_volestrangler]

2. It's a tax on certain kinds of debts

It is an annual tax of 0.075% on the value of all of the debts of the UK banks (including money deposited with the banks), except that:

ordinary deposits covered by the UK's deposit insurance scheme are exempt
the first £20bn of any bank's taxable debts is exempt
the banks only pay half the tax rate on their long-term debts
...
The government thinks it will discourage banks from relying on risky forms of borrowing, which were blamed for making the 2008 crisis much more dangerous.

http://www.bbc.co.uk/news/business-12391532

[dipsydoodle]

3. On this bit :

In the UK, the first £85,000 of an individual's money is insured (it used to be £35,000 before the financial crisis).

This means that most depositors do not need to worry about the safety of their money during a financial crisis, and the banks don't need to worry about all those deposits being withdrawn.

To the best of your knowledge does that protected figure refer only to consumer accounts or business accounts too ?

[muriel_volestrangler]

4. A good question, which I had no idea about

and it doesn't seem to be a simple answer:

The FSCS was set up mainly to assist private individuals, although smaller businesses are also covered.
Larger businesses are generally excluded, although there are some exceptions to this for deposit and insurance claims.

http://www.fscs.org.uk/what-we-cover/eligibility-rules/

[dipsydoodle]

5. Thanks

Small company is what I've still got.