ECL25000 - Computation step 4: calculate the ECL charge
ECL Rates
The amount of the levy charged for a financial year is based on the band range that the person falls into (s54(2) FA22):
- A person who falls into Band A will pay £10,200.
- A person who falls into Band B will pay £36,000.
- A person who falls into Band C will pay £500,000.
- A person who falls into Band D will pay £1,000,000.
Historical ECL Band Structure and Rates
For financial years beginning before 1 April 2026, the levy rates under the previous band structure were:
- A person who fell into the medium band paid £10,000.
- A person who fell into the large band £36,000.
- A person who fell into the very large band paid £500,000.
From April 2022 (when the ECL was introduced) to March 2024, the levy for a person who fell into the very large band was £250,000.
Regulated business for only part of the financial year
The levy chargeable for each band range must be proportionally adjusted if a person only carries on a regulated business [ECL12200] for part of the financial year. This calculation should be done using days.
This means that if a business either commences or ceases to carry on a regulated business during the financial year it will not pay the full amount of the levy for that year (s54(3)).
The calculation is the levy chargeable for the band size, multiplied by the number of days of the relevant accounting period divided by 365.
You can find examples of this calculation in [ECL26600] and [ECL26700].