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HMRC internal manual

Bank Levy Manual

Relevant entities and groups: banking groups: UK resident bank: the conditions

Paragraph 80 of Schedule 19

An entity will be a UK resident bank if it:

  • meets the residence condition
  • meets the financial sector condition
  • meets either of:

    • the deposit-taker condition, or
    • the wider banking condition
  • meets the capital resources condition, and
  • is not an excluded entity.

A UK resident entity may also be a UK resident bank if it is a member of a banking partnership (see BKLM260000).

Residence condition

Paragraph 80(1)(a) of Schedule 19

The residence condition is that the entity is resident in the UK for corporation tax purposes, if it is a company. See INTM120000 (external users can find the guidance at ) onwards.

A partnership for the purposes of the bank levy is resident in the territory in which the control and management of the partnership business takes place.

Financial sector condition

Paragraph 80(1)(b) of Schedule 19

The financial sector condition is that an entity is an authorised person for the purposes of the Financial Services and Markets Act (FISMA): see section 31 of that Act.

Deposit-taker, wider banking condition and capital resources condition

The deposit-taker condition and the wider banking condition focus on the entity’s activities.