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HMRC internal manual

Bank Levy Manual

HM Revenue & Customs
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Collection and management: returning the bank levy: bank levy treated as if it is Corporation Tax

As set out in paragraph 50(2) of Schedule 19 the bank levy is to be treated as if it were Corporation Tax charged on the group’s responsible member; paragraph 51(2) treats the bank levy as if it were Corporation Tax charged on the relevant entity.

Paragraph 60 of Schedule 19

Paragraph 60 amends Paragraph 1 of Schedule 18 Finance Act 1998 to include the bank levy in the list of items that are treated as if they were Corporation Tax.

This will bring the bank levy within FA98/SCH18 (the Corporation Tax self assessment regime). As a consequence of this, the responsible member for the relevant group or the bank or building society (where an entity is not part of a group) will have to include the bank levy within its company tax return.

This means that all of the processes and procedures that relate to company tax returns, will also apply to the bank levy in the normal way. So that:

  • the time limit for submitting the return of the bank levy is determined by the filing date for the company tax return
  • any financial documents required (see BKLM452000) will be submitted as part of the Corporation Tax return
  • any enquiries into the bank levy will be made as part of the normal Corporation Tax enquiry regime within Schedule 18, and
  • any other matters relating to assessment and other procedures around the return will be governed by FA98/SCH18.

Schedule 46 to Finance Act 2009

As the bank levy will be treated as if it is Corporation Tax, the provisions of FA09/SCH46 (senior accounting officers) apply. The senior accounting officer is responsible for ensuring and certifying that appropriate tax accounting arrangements have been established and are maintained.