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HMRC internal manual

Bank Levy Manual

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HM Revenue & Customs
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Chargeable equity and liabilities: adjustments required for aggregation: background

Paragraphs 18 and 20 of Schedule 19

In order to arrive at the chargeable equity and liabilities of foreign banking groups (see BKLM342000), and relevant non-banking groups (see BKLM343000) the chargeable equity and liabilities of various different members of the relevant group are brought together to give the overall chargeable equity and liabilities of the group.

To ensure that the chargeable equity and liabilities do not contain any items that are double counted or that would have fallen out on consolidation special rules apply when calculating the chargeable equity and liabilities.

As UK headed banking groups and building society groups base their chargeable equity and liabilities on their consolidated financial statements any adjustments to remove intra-group transactions have already taken place on consolidation, so similar provisions are not required for either:

  • UK headed banks and building societies (paragraph 15 of Schedule 19), or
  • UK bank or building societies that are not part of groups (paragraph 21 of Schedule 19), or
  • foreign banks trading in the UK that are not part of groups (paragraph 23 of Schedule 19).

Similarly, as banks that are not part of groups base their chargeable equity and liabilities on their own accounts, again no adjustments are required.