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HMRC internal manual

Bank Levy Manual

HM Revenue & Customs
, see all updates

Chargeable equity and liabilities: relevant entities and groups: relevant non-banking groups: introduction

Paragraph 19 of Schedule 19

The bank levy also applies to non-banking groups that have within their UK operations a bank or banking sub-group. In these groups the bank levy is only chargeable on the sum of the chargeable equity and liabilities of any banking operations (UK resident banks, relevant foreign banks and banking sub-groups) that form part of a non-banking group.

The non-banking group can be a UK headed group or a foreign headed group. This means that the banking activities of the group may take place within entities in a UK sub-group, through UK subsidiaries or through a permanent establishment (a branch) of a foreign company, or through a mix of these entities. The UK bank subsidiaries may in turn hold other subsidiaries (with either banking or non-banking activities) which may be in the UK or may be abroad and the equity and liabilities of these entities will also fall within the bank levy charge.

The process for determining the chargeable equity and liabilities of a relevant non-banking group is similar to that used for a foreign banking group (see BKLM322000), resulting in Type A, Type B, Type C and Type D chargeable equity and liabilities that are summed together to give the overall chargeable equity and liabilities of the relevant non-banking group.

Further details about Type A, B, C and D equity and liabilities can be found at:

BKLM323100 Type A equity and liabilities
BKLM323200 Type B equity and liabilities
BKLM323300 Type C equity and liabilities
BKLM323400 Type D equity and liabilities

See BKLM323500 onwards for rules for joint ventures.