Introduction: background to the bank levy
The Chancellor of the Exchequer announced in the June 2010 Budget the introduction of a bank levy to apply to UK banks and building society groups, foreign banks and banking groups operating in the UK and UK banks in non-banking groups for periods of accounts ending on or after 1 January 2011.
This was followed by a formal consultation between 13 July 2010 and 5 October 2010. The Government announced its proposals on the final design of the bank levy in a Consultation Response Document (PDF 409KB) () on 21 October 2010.
Draft legislation, supported by a Technical Note and an Explanatory Note were also published on 21 October 2010 and following further consultation on these draft clauses the draft legislation dealing with the bank levy was published as part of the draft Finance Bill 2011 on 9 December 2010.
Finance Bill 2011 received Royal Assent in July 2011 and the bank levy can be found at Schedule 19, Finance Act 2011.