The new bonus tax enacted by the UK Government could penalise banks which hand out pay in line with the recommendations made by Sir David Walker, whose work on remuneration was sponsored by the UK Treasury, in an unintended consequence of the levy.

The UK Treasury on Wednesday announced a one-off 50% levy on bank bonuses that exceed £25,000 (€27,649). The tax will apply to bonuses paid in cash, stock, options or debt, according to HM Revenue & Customs' technical notes on the tax.