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HMRC internal manual

Bank Levy Manual

HM Revenue & Customs
, see all updates

Chargeable equity and liabilities: relevant foreign banks: attribution of chargeable equity and liabilities to a branch: determining 'B' the assets of the UK branch (step 2): the key entrepreneurial risk taking KERT activities

The single enterprise principle requires assets of the foreign bank to be attributed to the UK branch, where the key entrepreneurial risk taking (KERT) functions associated with the assets take place in the branch.

The main KERT functions in traditional banking are the creation of an asset and the management of risk, primarily credit risk, assumed by the bank in creating the asset.