The financial services sector has been set to move away from the new global tax rules

The UK is ready exception for financial services based on new global rules for taxing multinationals, a move that would ensure that London’s largest banks do not pay more profit taxes in other countries.

Interviews with the OECD in Paris, which is due to end on Thursday, have approved a case for Britain to rip off the financial services industry. the proposed new global tax system, according to two people who reported the negotiations.

These people said that the cost of negotiating the details of the new corporate taxes to the chancellor Rishi Suna in the UK was a victory. He had to make concessions to the US to dissolve the UK digital services tax on American technology companies.

The workshop on financial services was held in the first half of the global tax negotiations at the OECD club of rich countries, trying to define where the largest multinationals should pay their taxes in the future.

The second part of the talks is aimed at agreeing on a general minimum tax rate of 15 per cent on corporate tax to prevent companies from transferring profits to low-tax jurisdictions.

In the first part of the talks, the so-called first pillar, the UK and France have pushed for larger companies, especially US technology groups, to pay more taxes in countries that operate but are not necessarily located.

The U.S. agreed based on where multinationals operate in terms of taxation, while other countries pledged to eliminate digital taxes, but surprised the UK by saying the pillar of a tax rule should apply to all sectors, including financial services.

“It was a pure game between the US, the UK and France,” said one person close to the negotiations.

The UK believed that financial services would be derived from the new global tax rules, as regulations require them to be capitalized in all jurisdictions in which banks operate, thus declaring profits and paying taxes in the countries where they do business.

Without exception, the UK Treasury risked that the City’s banks would pay less in taxes and more to other countries.

The person who reported on the OECD talks said the US wanted to make sure the UK would make a more specific commitment to get rid of the tax on digital services so far as soon as possible, but that the timing of the elimination was “carefully choreographed”.

The US initially wanted the UK, France, Italy and other countries that had digital taxes to cancel at the time new digital tax rules were agreed, but this faced stiff opposition from London and Paris.

A Sunak ally said, “It’s like giving your car keys before you make money.”

But UK officials acknowledged that a step-by-step process would be needed to get rid of countries with digital taxes by taking some steps, while at the same time making US moves to implement a new global tax system.

Allied Sun said, “I think it’s pretty obvious that Americans are going to eliminate taxes on digital home services. They will be, but everything has to be examined in turn.”