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HMRC internal manual

Bank Levy Manual

HM Revenue & Customs
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Double Taxation Relief: Germany: how relief is given

Claims - Regulations 6 and 7 of SI2012/459

Relief can only be given for any relevant German bank levy paid following a claim (paragraph 66(6) of Schedule 19 to the Finance Act 2011). As the bank levy is returned on the normal company Self Assessment return the rules relating to claims under Corporation Tax Self Assessment apply.

The claim must be made by the responsible member of the group or by the relevant entity. If the responsible member is a subsidiary of the German group and the only entity subject to both levies is a Permanent Establishment the claim must still be made by the responsible member.

Relief can only be given once the German bank levy has been paid and cannot be claimed for amounts due. For instance if a German bank levy payment is capped because of the level of profits, relief will only be given for amounts above the cap once the bank’s profits have risen and the deferred payment is actually made.

The claim is limited to the lesser of the amount of the bank levy (i.e. the UK bank levy can only be reduced to £nil) or the amount of German bank levy payment attributable to the UK.

Time limits - Regulation 6 of SI2012/459

A claim for relief must be made within 4 years of the end of the accounting period for which the bank levy is treated as an amount of Corporation Tax. Alternatively, where the German bank levy is paid later than this, a claim may be made up to 12 months after the payment has been made.


The responsible member returns bank levy of 100 for the accounting period ended 31 December 2015. Credit for any double taxation relief can be claimed until 31 December 2019. However on 17 March 2020 the German company pays extra German bank levy of 80 of which 30 relates to the UK Permanent Establishment. The responsible member has until 17 March 2021 to claim the extra relief.

Exchange rates - Regulation 5 of SI2012/459

Normally the bank levy and the equivalent foreign levy will be in different currencies. The exchange rate to be used is the spot rate of exchange for the last day of the chargeable period in relation to which credit is claimed.

The source of the spot rate is not defined. You should accept any reasonable source for the rate such as that shown on the Bank of England website.