In early trading today the chancellor George Osbourne announced plans to start taxing UK banks this year. He made his comments on the BBC radio 4 show and confirmed that this new tax could raise as much as £800 million through 2011. he went on to say that these plans have actually been brought forward as figures are showing that the banks are holding a higher percentage of cash on their books.
This news which spread like wild fire across news stations has resulted in both stock and sterling loses as this tax will come out of bank profits. Plus as the banking sector equates to a large proposition of the overall GDP of the UK economy so sterling has been heavily sold. The pound comes to the end of the day down against 14 of the 16 most traded currencies with large losses close to a percent against the euro. Making a difference of over €2,500 on a £200,000 transfer.
Again this shows that the markets can really shock and on a house purchase, business payment or investment today would have made a big difference on the amount achieved. If you are looking at sending money abroad and want to maximise your rate of exchange feel free to contact us today as we are the eyes and ears for thousands of clients saving thousands.