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HMRC internal manual

Bank Levy Manual

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HM Revenue & Customs
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Introduction: structure: the chargeable period

Paragraph 4 of Schedule 19

The bank levy applies for periods of account ending on or after 1 January 2011.

It is an annual balance sheet charge based on the equity and liabilities reported on the relevant balance sheets at the end of a period of account of the entity, or in the case of a group, the parent entity.

An entity’s ‘period of account’ is a period for which it prepares financial statements, whether consolidated or otherwise.

The period of account for consideration is termed the ‘chargeable period’.

Paragraph 41 of Schedule 19

This paragraph applies where the entity or parent entity, as the case may be, does not prepare accounts for a period. In such circumstances paragraph 41 deems there to be a period of account and thus a chargeable period as follows:

  • Where the period for which no accounts are prepared is a period of 12 months or less then that period is treated as if it were a period of account of the entity and thus a chargeable period.
  • Where the period for which no accounts are prepared is greater than 12 months then the periods of account (and chargeable periods) are:

    • the first 12 months of the period for which no accounts are prepared
    • any 12 month period thereafter starting immediately after the above period (or any other period determined under this bullet) and ending during the period for which no accounts are prepared
    • any period of less than 12 months starting immediately after the last 12 month period determined under the previous bullet and ending on the last day for which accounts are not prepared by the relevant entity.