Britain eyes 2 billion pound savings from bank tax reforms

Britain's government will further restrict banks' ability to use pre-2015 losses to offset profits when calculating their corporation tax, in a move that could generate just over 2 billion pounds in tax revenues by 2021.

The move, announced by Britain's Treasury in its annual budget statement on Wednesday, will see the government recoup an expected additional 330 million pounds of revenues in 2016-7.

The Treasury said the reform was aimed at maintaining the exceptional treatment of banks in corporation tax measures, as a response to the industry's involvement in the 2008-9 financial crisis and various misconduct scandals.

The government will reduce the amount of profit the banks can offset from 50 percent to 25 percent from April 1.

George Osborne earlier said he would miss a target for bringing down public debt this year, but stuck to his plan to get the public finances back into the black by the end of the decade.

Shares in UK wealth managers get Budget boost

Shares in leading British wealth managers St James's Place and Hargreaves Lansdown rose on Wednesday after the government announced plans to help individuals save more money.

George Osborne said he would increase the savings allowance in each citizen's Individual Savings Account (ISA) to 20,000 pounds a year from April 2017, from around 15,000 pounds currently.

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Shares in UK gambling groups rise as no new taxes unveiled in budget

Shares in British gambling companies such as Ladbrokes and William Hill rose on Wednesday, with traders citing relief that the British budget did not unveil any strict, new taxes on the sector.

"No tax hikes, so positive for the sector," said Securequity sales trader Jawaid Afsar.

Ladbrokes' shares rose as much as 8.8 percent before settling back to stand 4.9 percent higher by 1400 GMT.

William Hill's shares rose 3.3 percent while shares in Paddy Power Betfair also advanced 1.7 percent.

Britain raises insurance premium tax to 10 percent

George Osborne said on Wednesday he would raise the tax on insurance premiums by 0.5 percentage points to 10 percent to fund flood defences, a smaller increase than some industry players had anticipated.

The hike follows a 3.5 percentage point rise in insurance premium tax last year, which has driven a rise in motor insurance premium rates, as insurers passed the tax hike onto consumers.

Motor insurance premiums rose 8 percent last year, according to the Association of British Insurers.

"I am going to increase the standard rate of Insurance Premium Tax by just half a percentage point – and commit all the extra money we raise to flood defence spending," Osborne said in his annual budget statement.

Motor insurers Admiral and Direct Line were up 0.5 percent and 1.9 percent respectively at 1338 GMT.

Britain to levy sugar tax on soft drinks industry

Britain will introduce a sugar levy on soft drinks in two years' time, George Osborne said in a surprise announcement in his annual budget on Wednesday.

Osborne said the levy, which would be imposed on companies and based on drinks' sugar content, would raise 520 million pounds.

Shares in drinks and sugar groups fell on the news, with Britvic and AG Barr, which makes Irn Bru, down between 3 percent and 5 percent. Sugar group Tate & Lyle was down 2 percent.

Britain cuts taxes for North Sea oil producers

Chancellor George Osborne said he would cut taxes for energy companies pumping oil from the country's North Sea fields, in a boost for the indstry which is suffering from the impact of low crude prices.

"I am today cutting in half the Supplementary Charge on oil and gas from 20 percent to 10 percent. And I'm effectively abolishing Petroleum Revenue Tax too," Osborne said in his annual budget statement on Wednesday.

Shares in oil companies with fields in the North Sea including BP, Shell and Cairn Energy traded up on the news.