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HMRC internal manual

Bank Levy Manual

Chargeable equity and liabilities: adjustments required for aggregation: relevant non-banking groups

Paragraph 20 of Schedule 19

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

The paragraph refers to ‘relevant member’ which for the purpose of this paragraph means:

  • a relevant UK banking sub-group (one that has Type A equity and liabilities)
  • a UK resident bank (one that has Type B equity and liabilities)
  • an entity that gives rise to Type C liabilities.

Paragraphs 20(3) and (4) of Schedule 19

Where the members of the relevant UK banking sub-group are members of a larger UK banking sub-group any equity of the relevant UK banking 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, is left out.

Paragraphs 20(5) and (6) of Schedule 19

Where a relevant member that gives rise to Type B or Type C equity and liabilities is a member of one or more UK banking sub-groups any equity of the relevant member that would have been eliminated under normal consolidation procedures under IAS or UK GAAP had the UK banking sub-group prepared consolidated accounts is left out.

Paragraphs 20(7) of Schedule 19

Any liabilities to other relevant members and any liabilities that correspond to assets that are allocated to any UK branch of a bank entity within the same group (that gives rise to Type D chargeable equity and liabilities) are left out.