Finance Act 2018

6 (1) Paragraph 27 (UK allocated equity and liabilities: determining the amount of the foreign bank's chargeable equity and liabilities) is amended in accordance with this paragraph. U.K.

(2) In sub-paragraph (2)—

(a) in the words before paragraph (a), for “chargeable equity and liabilities” substitute “ adjusted equity and liabilities ”,

(b) in paragraph (b), for “paragraphs 25(8)” substitute “ paragraph 27D(1) ”, and

(c) in paragraph (c), for sub-paragraph (i) (but not the “and” following it) substitute—

“(i) the amount of the entity's high quality liquid assets as at the end of that period, other than—

(a) any asset which for the purposes of an adjustment under paragraph (b) is an asset to which paragraph 27D(1) applies;

(b) in a case where the bank levy is charged as provided for by paragraph 4 (groups), any asset to which paragraph 15U(1) applies for the purposes of adjusting the amount of the equity and liabilities of another member of the relevant group (see Step 2 in paragraph 15N(1)),”

(3) In sub-paragraph (3), for paragraph (b) (but not the “and” following it) substitute—

“(b) that financial asset is not an asset which—

(i) for the purposes of an adjustment under sub-paragraph (2)(b), is an asset to which paragraph 27D(1) applies, or

(ii) in a case where the bank levy is charged as provided for by paragraph 4 (groups), is an asset to which paragraph 15U(1) applies for the purposes of adjusting the amount of the equity and liabilities of another member of the relevant group under Step 2 in paragraph 15N(1),”.

(4) In sub-paragraph (5), in the words before paragraph (a), for “paragraph 17(7) or 19(17)” substitute “ paragraph 15(2)(b) ”.

(5) In sub-paragraph (5), for paragraphs (a) and (b) substitute—

“(a) UK connected liabilities to a chargeable UK resident entity which is a member of the relevant group,

(b) UK connected liabilities to a UK sub-group of the relevant group, and

(c) UK connected liabilities to any other relevant foreign bank which is a member of the relevant group.”

(6) After sub-paragraph (5) insert—

“(5A) In sub-paragraph (5), references to “UK connected liabilities” have the same meaning as in paragraph 15R(2) (see paragraph 15R(3) to (5)).”