You are here: Home - Investing - Experienced Investor - News -

HSBC drives FTSE higher over prospect of UK exit

0
Written by:
24/04/2015
HSBC shares leaped by 3 per cent today, pushing the FTSE 100 up by 0.5 per cent, after the bank announced a full review of its UK domicile status.

The prospect of HSBC changing domicile has been a source of speculation for the financial media, analysts, and representatives of the bank since the financial crisis; however, the announcement is the first tangible suggestion that the bank could exit the UK.

In a speech to the bank’s annual general meeting today, HSBC chairman Douglas Flint said the review has been prompted by increased taxes, the spectre of an EU referendum, and “regulatory and structural reforms which have been put in place post-crisis.”

In January 2011, the Coalition introduced a new bank levy as part of a joint move with France and Germany, initially set at 0.04 per cent before rising to 0.07 per cent the next year. Both Labour and the Conservatives have not only pledged to maintain the levy after the 2015 General Election, but mooted the possibility that it could be raised in years to come. It is projected that £3bn will be raised via the levy over this year. Last year, HSBC paid £750m toward the bank levy, the highest figure of any British bank.

“The board has asked management to commence work to look at where the best place is for HSBC to be headquartered in this new environment,” said a spokesperson for HSBC. “The question is a complex one and it is too soon to say how long this will take or what the conclusion will be; but the work is underway.”

 

Tagged:

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Annuity rates reach record lows

Standard annuity rates have shrunken to records low, according to a report issued by Moneyfacts.

Close