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HMRC internal manual

Bank Levy Manual

Relevant entities and groups: banking groups: UK resident bank: the wider banking condition: the second and third parts

Paragraphs 80(1)(c)(ii) and 79(b) - (f) of Schedule 19

Second part: entity’s activities

The second part of the wider banking condition is that the entity’s activities consist wholly or mainly of any of the regulated activities described in the following articles of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI2001/544):

  • article 14 (dealing in investments as principal)
  • article 21 (dealing in investments as agent)
  • article 25 (arranging deals in investments)
  • article 40 (safeguarding and administering investments), and
  • article 61 (entering into regulated mortgage contracts).

Paragraph 80(1)(d) of Schedule 19

Third part: trade

The third part of the wider banking condition is that the entity carries on those regulated activities wholly or mainly in the course of trade.

In the context of the bank levy, we consider that ‘mainly’ means more than 50%. Ordinarily, we would expect that where the relevant regulated activities (see BKLM243150) generate the majority of the entity’s trading income then that entity would be a UK resident bank or relevant foreign bank (unless otherwise excluded).