The UK will temporarily raise the bank profits surcharge from 3% to 6%, adding to the 25% corporation tax rate and partially reversing a cut introduced in 2023.
The UK Finance Minister John Healey announced on 28 October 2026 that the UK will double a tax surcharge on banks for 15 months. The measure is part of the 2026 budget, which was presented to Parliament on 28 October 2026.
The surcharge applies to bank profits above a set threshold. Under the change, the rate rises from 3% to 6%. This partly reverses an 8% cut the previous government made in 2023 under then Prime Minister Rishi Sunak.
The surcharge sits on top of the 25% corporation tax rate. Healey will not restore it to the 8% level that applied until 2023, Bloomberg said, citing people familiar with the matter. The rise is temporary.
