BKLM153000 - Introduction: structure: determining the tax base

Part 2 of Schedule 19

The starting point for working out what the chargeable equity and liabilities are in any chargeable period is the identification of the correct financial statements for the relevant group or entity from which to obtain these amounts.

Chargeable periods ending on or before 31 December 2020

The financial statements that form the basis for working out the bank levy liability for chargeable periods ending on or before 31 December 2020 are:

  • for UK banking groups - the consolidated financial statements of the group
  • for building society groups - the consolidated financial statements of the group
  • for foreign banking groups - the aggregated equity and liabilities of the foreign banking groups:
  • relevant UK sub-groups (from their consolidated balance sheets)
  • UK subsidiaries (not members of relevant UK sub-groups) (from their respective balance sheets)
  • non UK resident subsidiaries with a UK parent (not members of relevant UK sub-groups) (from their respective balance sheets), and
  • UK branches (from their relevant balance sheets - subject to the attribution methodology).
  • for relevant non-banking groups - the aggregated equity and liabilities of any:
  • relevant UK banking sub-groups (from relevant consolidated balance sheets)
  • UK resident banks (not members of relevant UK banking sub-groups) (from their respective balance sheets)
  • other entities that are a member of the UK banking sub-group (but not a relevant UK banking sub-group) (from their respective balance sheets), and
  • relevant foreign banks (from relevant balance sheets- subject to the attribution methodology).
  • for stand-alone banks - the financial statements of any stand alone UK resident bank and the allocated equity and liabilities of any UK branch of a stand alone relevant foreign bank
  • for stand-alone building societies - the financial statements of the building society

Special rules apply for joint ventures - see BKLM323500.

For definitions of the groups and entities - see BKLM200000.

Chargeable periods ending on or after 1 January 2021

The financial statements that form the basis for working out the bank levy liability for chargeable periods ending on or after 1 January 2021 are:

  • for relevant banking and building society groups:
  • UK sub-groups (from the consolidated balance sheets of the UK sub-group or residual UK sub-group unless there is an entity-by-entity election)
  • chargeable UK resident entities (not members of UK sub-groups) (from their respective balance sheets),
  • for designated FPE entities (from their respective balance sheets – subject to adjustment methodology): and
  • UK branches (from their relevant balance sheets - subject to the attribution methodology).
  • for relevant non-banking groups:
  • UK sub-groups with a UK resident bank as parent (from the consolidated balance sheets of the UK sub-group or residual UK sub-group unless there is an entity-by-entity election)
  • a UK resident bank or a subsidiary of one (not members of UK sub-groups) (from their respective balance sheets),
  • for designated FPE entities (from their respective balance sheets – subject to adjustment methodology): and
  • UK branches (from their relevant balance sheets - subject to the attribution methodology).
  • for stand-alone banks - the financial statements of any stand-alone UK resident bank and the allocated equity and liabilities of any UK branch of a stand-alone relevant foreign bank
  • for stand-alone building societies - the financial statements of the building society

Further details on the correct financial statements can be found in BKLM452000.

For definitions of the groups and entities - see BKLM200000 and BKLM320000.