UK banks may face $10bn US tax bill, reports

15th Jan 2010 13:16

Three of the UK's biggest banks could face a $10bn (£6bn) tax bill from the US government as part of the Obama Administration's effort to recoup the losses on the $700bn cash advanced under the TARP rescue scheme, according to press reports.Part-nationalised Royal Bank of Scotland may have to hand over almost $1bn over the next decade, the Times writes, while Barclays could face a bill of about $5.6bn. HSBC may have to rack up over $3.8bn over ten years.The report comes after President Obama vowed to "recover every single dime the American people are owed" yesterday.Obama hit Wall Street's leading banks with a swingeing new levy to generate at least $90bn in tax for the US government. The US's top 50 financial firms, those with assets greater than $50bn, will all be hit by the levy.About 35 would be US companies and 10 to 15 US subsidiaries of foreign companies. He said the aim was not to punish the firms but to stop abuses and excesses from happening again, but analysts said the timing of the announcement is significant as it comes just days ahead of the bank fourth quarter earnings season.Full details about how the measure would work will be part of Obama's proposed 2011 budget next month.