ECL25000 - Computation step 4: calculate the ECL charge
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 the medium range band will pay £10,000.
- A person who falls into the large range band will pay £36,000.
- A person who falls into the very large range band will pay £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].