Bank levy – new guidance
HMRC have requested that relevant groups nominate the entity that they wish to be ‘the responsible member’ for the purposes of the bank levy. Newly published guidance includes details of how to nominate the responsible member.
The bank levy will apply to all UK banks and building society groups, foreign banks and banking groups operating in the UK and UK banks in non-banking groups for periods of accounts ending on or after 1 January 2011.
HMRC recently published a manual that covers who is chargeable to the levy, how to determine the chargeable period, the financial statements which determine the chargeable equity and liabilities and the steps to determine chargeable equity and liabilities.
The bank levy is designed to encourage banks to take on less risky funding profiles, improve regulatory standards and enhance the financial stability of the UK banking industry.