Section 203: Bank Levy: Rates from 1 January 2014
Summary
1.Section 203 amends the rates at which the bank levy is charged.
Details of the Section
2.Subsection (2) increases the bank levy rates from 1 January 2014.
3.Subsections (3) to (6) amend Paragraph 7, Schedule 19, Finance Act 2011 so that it applies where some or all of the chargeable period falls before 1 January 2014. It introduces into the table of rates at paragraph 7(2) the new bank levy rates for the period 1 January 2014 onwards.
Background
4.The bank levy is an annual balance sheet charge based upon the chargeable equities and liabilities of all UK banks and building society groups, foreign banks and banking groups operating in the UK and UK banks in non-banking groups from 1 January 2011 onwards.
5.Bank levy is treated as if it is corporation tax, and the relevant entity or, in the case of a banking group, the “the responsible member” (see paragraph 54, Schedule 19) is required to both make a return of the bank levy (as part of its company tax return) and to pay the bank levy.
6.Entities that pay the bank levy are required to do so under the provisions of The Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175).
