British Treasury chief announces one-off tax on bankers’ bonuses

UK announces one-off tax on bankers’ bonuses

LONDON — British Treasury chief Alistair Darling has announced a one-off tax on bankers’ bonuses.

The 50-percent tax unveiled in the government’s pre-budget report on Tuesday will be levied on 2009 bonuses of more than 25,000 pounds ($40,800).

The charge will be imposed on the pool of bonuses, rather than individual payments. It will be paid by banks — not the employee.

The government has sharply criticized bonuses paid to bankers — especially those paid by companies saved from collapse by taxpayers’ money — and the measure is likely to prove popular with the general public.

The Labour government’s pre-budget report is seen as key to setting the tone for a debate about how best to fuel Britain’s slow recovery from recession ahead of next year’s general election.