A permanent annual levy on bank balance sheets is expected to raise about £2.5bn for the Treasury every year, the government said today.
Draft legislation published today says the levy, to be introduced in January, will apply to the global balance sheets of UK banks as well as the UK operations of overseas institutions.
The Treasury said the legislation would ensure banks made a contribution to society equitable to the potential risk they pose to the financial system.
Financial secretary Mark Hoban said he hoped it would also incentivise banks to "make greater use" of more stable financial sources, such as long term debt and equity.
Chancellor George Osborne said on Wednesday he wanted "to extract the maximum sustainable tax revenues from financial services".
Banks were consulted on the legislation over the summer.
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