Geese, Sticks and Carrots – How Domestic Tax Developments Have Impacted on the UK Financial Services Industry

The financial services industry is of critical importance to the UK economy. Since the financial crisis of 2008/09, the UK government has introduced a variety of measures that have been relevant to it, including several that have targeted specific parts of the industry. The measures have had differing objectives, including straightforward revenue raising and encouraging behavioural change. For example, the banking sector has been subjected to specific taxes to reflect the risk that the government considers it poses to the economy, while anti-avoidance provisions have been introduced targeting the fund management industry. In this article the authors discuss the impact of these and other measures, as well as future developments.