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HMRC internal manual

Bank Levy Manual

Introduction: structure: steps for determining the amount of the bank levy: summary

Paragraph 6 of Schedule 19

Once the correct financial statements needed for the bank levy have been identified a 7 step process should be followed to ascertain the amount of bank levy payable.

Detailed guidance on each step is set out as per the links below but in summary:

  • step 1 (BKLM154100): Sets out how to determine the chargeable equity and liabilities of the group or entity used to calculate the bank levy charge
  • step 2 (BKLM154200): Sets out how to apply the allowance relating to the first £20 billion of chargeable equity and liabilities determined under Step 1
  • step 3 (BKLM154300): Sets out the rules for identifying how much of the chargeable equity and liabilities are to be treated as long term and how much are short term
  • step 4 (BKLM154400): Explains how to convert the amounts of chargeable equity and liabilities into percentage proportions
  • step 5 (BKLM154500): Explains the process for applying the £20bn allowance
  • step 6 (BKLM154600): Sets out how to calculate the adjustments needed to the calculations of levy where the chargeable period is not a 12 month period of account
  • Step 7 (BKLM154700): Explains how to apply the bank levy rates.

Note: there are special provisions for chargeable periods beginning before 1 January 2011 and for chargeable periods that fall wholly or partly before 1 January 2012 and 1 January 2013 - see BKLM154800