Banks will be subjected to a one-off levy of 50% on any bonuses above £25,000.
Darling, who estimates the levy will raise £0.5bn, adds the levy will be paid for by the bank and not the employee.
The Chancellor said banks lost £80bn last year and, despite widespread rumours, has decided against a windfall tax.
He said banks have a choice - to use profits to build up their capital base, or, if they use it for bonuses, to give a large sum back to the taxpayer.
More to follow...
Consistency and compliance vs. slower reaction time
Search for replacement to begin imminently
60+ £300bn ISA savings
Has technology moved on?
Total funds on list rise from 26 to 58