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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: foreign banking groups

Paragraph 18 of Schedule 19

This paragraph provides for various amounts to be deducted when calculating the Type A, B and C equity and liabilities of foreign banking groups.

The legislation refers to a ‘relevant member’ which for this purpose means:

  • a relevant UK sub group (one that has Type A equity and liabilities)
  • a UK resident entity (one that has Type B equity and liabilities)
  • a non-UK resident entity (one that has Type C equity and liabilities).

Paragraphs 18(3) and (4) of Schedule 19

Where the members of a relevant UK sub-group are members of a larger UK sub-group, any equity of the relevant UK sub-group that would have been eliminated under normal consolidation procedures under IAS or UK GAAP, had the larger UK sub-group prepared consolidated accounts, can be left out of the calculations.

Paragraphs 18(5) and (6) of Schedule 19

Where a relevant member of a non relevant UK sub-group is a member of one or more UK sub-groups, any equity of the relevant member that would have been eliminated under normal consolidation procedures under IAS or UK GAAP, is left out.

Paragraph 18(7) of Schedule 19

Where a relevant member has liabilities to another relevant member or has liabilities that correspond to assets that are allocated to any UK branch of a bank entity within the same group (that is an entity having Type D chargeable equity and liabilities) these liabilities are left out.