Tax issues for banking lawyers

This overview is a guide to the Banking & Finance content within the Tax issues for banking lawyers subtopic, with links to appropriate materials.

Tax resources for banking lawyers

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Withholding tax

UK withholding tax

Withholding tax is a method of collecting tax at source from the person who makes the payment (as opposed to collecting it from the recipient of the payment). It is an efficient way for tax authorities such as His Majesty's Revenue and Customs (HMRC) to collect tax as the person making the payment has the administrative burden of:

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withholding the appropriate amount of income tax from the payment, and
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accounting for such tax to HMRC

Under UK law, where a payment of yearly interest has a UK source, an amount equal to the basic rate of income tax (currently 20%) must be withheld from the payment and paid to HMRC, unless an exemption applies.

There are a number

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Latest Banking & Finance News

AFME publishes ninth European Benchmarking Exercise report on private securitisations

The Association for Financial Markets in Europe (AFME), the European Data Warehouse and True Sale International have published their ninth biannual European Benchmarking Exercise report, covering H1 2025 private securitisation market data. Drawing on voluntarily submitted transaction-level information from 12 banks across six European countries, the organisers assessed the quality and usefulness of disclosure in the private cash securitisation market, excluding collateralised loan obligations, synthetic securitisations and public asset-backed securities. The market was estimated at €256.7bn, with €83bn of commitments represented in the dataset. Trade receivables and auto loans or leases together accounted for around 73% of commitments, rising to 87% when consumer loans and equipment leasing were included. Most transactions were originated after the 2019 Securitisation Regulation. AAA commitments remained stable at €24bn, A-rated commitments declined, BBB remained the dominant seller rating, and 87.2% of rated commitments were graded A or above.

ICAO publishes calculation triggering first airline carbon offset requirements under CORSIA

The International Civil Aviation Organization (ICAO) has published a calculation that will enable governments to inform airlines of their first carbon offsetting requirements under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). The calculation, based on 2024 international aviation growth data, allows governments to determine the specific amount of CO₂ each airline must offset to ensure carbon neutral growth in compliance with the 1944 Convention on International Civil Aviation. ICAO received emissions data covering 99% of CO₂ emissions in 2024 from 128 States, with the organisation estimating emissions for 10 additional States that did not provide data. The Sector's Growth Factor for 2024 has been set at 0.15405257, which governments will apply to individual airline emissions data to calculate offsetting obligations. ICAO has published the emissions data and comprehensive CORSIA documentation on its website to support transparency and accountability in the scheme's implementation.

UKSIF publishes report calling for overhaul of UK sustainability disclosures

The UK Sustainable Investment and Finance Association (UKSIF) has published a report calling for a bold evolution of the UK’s sustainability disclosure regime. The report, which draws on a survey of 20 members with £4.5trn in assets under management (AUM), found 85% of respondents cited accuracy issues in company disclosures and 70% reported difficulties verifying environmental, social and governance (ESG) data, with none rating the overall quality of ESG information as very high. UKSIF recommends introducing mandatory, standardised disclosures aligned with International Sustainability Standards Board (ISSB) standards, alongside climate transition plans for larger companies, to improve consistency and provide more robust forward-looking information.

ESMA publishes RTS on derivatives transparency and the OTC derivatives tape

The European Securities and Markets Authority (ESMA) has published its Final Report covering mandates under the MiFIR Review on derivatives trade transparency, package orders and the over-the-counter (OTC) derivatives consolidated tape (CT) input and output data. The report has been submitted to the European Commission, which will now have three months to decide whether to endorse the proposed regulatory technical standards (RTS). The new rules are expected to apply from 1 March 2027.

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