London is the most heavily taxed major financial centre for banks.

What the number says. In its press release (https://www.ukfinance.org.uk/news-and-insight/press-release/uk-finance-publishes-2026-banking-sector-tax-report), UK Finance reports a model-bank total tax rate of 46.2% in London, 42.2% in Amsterdam, 39.1% in Frankfurt, 29% in Dublin and 27.9% in New York¹. It says London's figure was revised from 46.5% in its Budget submission after a review of the bank surcharge allowance¹. Within those five cities, the claim holds.

What is missing. Paris is not in the report. The Guardian's own figures, reviewed by an accountancy firm, put the same model bank in Paris at 51.6% to 57.3%², above London's 46.2%. UK Finance told the Guardian that it considered including Paris but could not produce a robust like-for-like figure with the report's model bank². It also says it kept the same five cities for consistency, and that earlier reports showed Frankfurt with higher rates than the UK², so London has not always come out on top.

What the number counts. It is a total tax rate, not a bank tax rate. UK Finance names the bank surcharge, the bank levy and uncapped National Insurance contributions as key drivers¹. An analysis on taxpolicy.org.uk (https://taxpolicy.org.uk/2026/10/22/should-bank-tax-go-up/) argues that the model includes employer National Insurance, which it puts at 13.1% of commercial profit in London against 3.5% to 9.7% elsewhere³, and business rates, which the author leaves out on the view that the burden falls mainly on landlords. The same author says the model assumes banks recover 60% of VAT on costs, which Brexit undermines for UK banks, and that its methodology is not published³. These are judgment calls and an alleged error, not settled facts. The author also says they take no position on overall tax levels, and the piece does not dispute that UK bank taxes are among the higher ones.

What UK bank taxes actually are. According to HMRC's background note, the surcharge is 3% on profits above a 100 million pound allowance, down from 8% above 25 million before 2023-24; the main corporation tax rate is 25%; and the bank levy is 0.10% on short-term and 0.05% on long-term chargeable equity and liabilities, with the first 20 billion pounds not charged⁴. That makes 28% on bank profits above the allowance, before the levy and employment taxes.

The other side of the argument. TUC general secretary Paul Nowak accused the finance lobby of cherrypicking jurisdictions, and the TUC wants the surcharge raised from 3% to 8%, which it estimates would raise 2.25 billion pounds a year². The Guardian also reports that Barclays' chief executive said a tax rise would be bearable, while JP Morgan's Jamie Dimon warned in May that he could scrap a planned 3 billion pound London headquarters if Britain became hostile to banks². Both are statements of position from interested parties.