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HMRC internal manual

Bank Levy Manual

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Relevant entities and groups: banking groups: UK resident bank: the capital resources condition: groups

Paragraph 72(2) - (4) of Schedule 19

For a group, the capital resources condition is that the group has in aggregate a ‘capital resources requirement’ (within the meaning of the FSA’s Handbook of Rules and Guidance) at the end of the chargeable period of at least £100 million.

To calculate the group’s aggregated capital resources requirement and to see whether it meets the capital resources condition you take the following steps.

Step 1

List all the other entities which are members of the same group and are both BIPRU 730k firms and full scope BIPRU investment firms.

Step 2

List all the other entities which are members of the same group and carry on in the UK activities which include a regulated activity for the purposes of FISMA by virtue of article 5 (accepting deposits) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI2001/544).

Step 3

From the entities identified at Steps 1 and 2, exclude those entities which are ‘excluded entities’ - see BKLM250000.

Step 4

For each of the entities calculate the ‘capital resources requirement’ (within the meaning of the FSA’s Handbook of Rules and Guidance) as at the end of the chargeable period. If, in aggregate, their capital resources requirements are at least £100 million, then the group meets the capital resources condition.

At Step 4, the two special rules mentioned in the capital resources condition (see BKLM243160) relating to accounts prepared in foreign currencies and for permanent establishments in the United Kingdom, apply in relation to entities whose capital resources may be material to the £100 million threshold.

If the entity is not a member of a group, see the capital resources condition at BKLM243160.