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HMRC internal manual

Bank Levy Manual

From
HM Revenue & Customs
Updated
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Introduction: structure: determining the tax base

Part 2 of Schedule 19

The starting point for working out what the chargeable equity and liabilities are in any chargeable period is the identification of the correct financial statements for the relevant group or entity from which to obtain these amounts.

The financial statements that form the basis for working out the bank levy liability for any chargeable period are:

  • for UK banking groups - the consolidated financial statements of the group
  • for building society groups - the consolidated financial statements of the group
  • for foreign banking groups - the aggregated equity and liabilities of the foreign banking groups:

    • relevant UK sub-groups (from their consolidated balance sheets)
    • UK subsidiaries (not members of relevant UK sub-groups) (from their respective balance sheets)
    • non UK resident subsidiaries with a UK parent (not members of relevant UK sub-groups) (from their respective balance sheets), and
    • UK branches (from their relevant balance sheets - subject to the attribution methodology).
  • for relevant non-banking groups - the aggregated equity and liabilities of any:

    • relevant UK banking sub-groups (from relevant consolidated balance sheets)
    • UK resident banks (not members of relevant UK banking sub-groups) (from their respective balance sheets)
    • other entities that are a member of the UK banking sub-group (but not a relevant UK banking sub-group) (from their respective balance sheets), and
    • relevant foreign banks (from relevant balance sheets- subject to the attribution methodology).
  • for stand-alone banks - the financial statements of any stand alone UK resident bank and the allocated equity and liabilities of any UK branch of a stand alone relevant foreign bank
  • for stand-alone building societies - the financial statements of the building society

Special rules apply for joint ventures - see BKLM323500.

For definitions of the groups and entities - see BKLM200000.