The Bank Levy
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 applies to the global balance sheets of UK banks as well as to the UK operations of banks from other countries.
The Bank Levy rates will be increased from 1 January 2014 onward, the main rate will increase to 0.142% and a proportionate increase to 0.071% will be made to the half rate. This increase in the Bank Levy is intended to ensure that banks do not pay less tax as a result of the reductions in the Corporation Tax rate. The Bank Levy raises at least £2½ billion each year.