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UK biggest banks such as Barclays, HSBC and Royal Bank of Scotland will be hit harder by the question of double taxation as they are likely to pay the fee for the UK Government on their global budgets as well as similar taxes in countries such as the France, the Germany and the United States.

Angela Knight, Executive Director of the British Bankers Association said that double taxation is a "great" concern for the industry with the agreement international on how to deal with the problem seems to be reached soon.

Legislation is currently, the BBA warns that its members will be "imposed several times by multiple instances on the same activities."

A source to a large bank UK said that their group was seeking to any tax liability, he could be left, while the international banks and British subsidiaries are also included concerned by the potential costs.

The fee will be introduced on January 1 and should be approximately ￡ 2 5bn a year.

The Government has yet to confirm what will be the effective tax rate for collection with this and other details to be announced in a consultation on the draft of the latest legislation.

The project is to provide certain concessions for the banking sector, the most important is the change in the way in which the tax is applied.

Originally, the plan was to load the levy on the passive all banks balance sheet total of more than ￡ trends, but the project change this to an allowance of ￡ trends, whereby the tax only apply to the excess.

This remove the effect of the cliff that institution with ￡ 19. liabilities 9bn pay nothing and a ￡ 20 billion would be subject to a levy on all its commitments.

"It is a very important change and we are pleased that the Government responded to the concerns of the industry on the issue, said Knight."

Germany, France and the Spain are among the countries of Europe seeks to introduce their own bank picks and settle the question of double taxation to ensure that banks are not loaded several times on the same elements of liabilities will be a focus for the different national authorities.

In the meantime, the Treasury Board is supposed to examine plans for a refund made institutions.

Meeting of the month next the G20 could provide an opportunity to resolve the problem, although significant progress thought unlikely, according to the Bank source.

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