The bank levy
New draft regulations together with a revised copy of the bank levy manual have been published. Comments from interested parties should be sent to HMRC on or before 10 June 2011.
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. The levy will apply to the global balance sheets of UK banks as well as to the UK operations of banks from other countries.
The bank levy will apply to:
- The global consolidated balance sheet of UK banking groups and building societies.
- The aggregated UK-group and UK subsidiary balance sheets, together with a proportion (determined in accordance with these provisions) of the balance sheets of foreign banks operating in the UK through permanent establishments which are members of foreign banking groups.
- The balance sheets of UK banks and banking sub-groups in non-banking groups.
- The balance sheets of UK banks that are not members of groups.