SCHEDULES

SCHEDULE 19 U.K.The bank levy

Part 2 U.K.Charging of bank levy

Bank levy to be charged in relation to certain groups of entities U.K.

4 (1) The bank levy is charged if, as at the end of a period of account (“the chargeable period”) of an entity (“the parent entity”)— U.K.

(a) the parent entity is a parent and is not a subsidiary of any other entity, and

(b) the group (“the relevant group”) for which the parent entity is the parent is a group within sub-paragraph (2).

(2) The groups within this sub-paragraph are—

(a) a UK banking group,

(b) a building society group,

(c) a foreign banking group, or

(d) a relevant non-banking group.

See Part 3 of this Schedule for the definitions of these groups.

(3) “Group”, “parent” and “subsidiary” have the meaning given by those provisions of international accounting standards relating to the preparation of consolidated financial statements (whether or not the parent entity prepares financial statements under those standards).

(4) Accordingly, for the purposes of this Schedule the members of the relevant group are—

(a) the parent entity, and

(b) any other entity which, as at the end of the chargeable period, is a member of the group for the purposes of the provisions mentioned in sub-paragraph (3).

(5) Sub-paragraphs (3) and (4) are subject to what follows.

(6) Sub-paragraph (7) applies if—

(a) as at the end of the chargeable period—

(i) the parent entity is resident in a territory outside the United Kingdom,

(ii) generally accepted accounting practice for entities resident in that territory is or includes US GAAP, and

(iii) the parent entity is a parent for the purposes of those provisions of US GAAP which relate to the preparation of consolidated financial statements (as well as being a parent for the purposes of the provisions mentioned in sub-paragraph (3)), and

(b) the parent entity prepares consolidated financial statements for the chargeable period under US GAAP.

(7) The relevant group is the group for which the parent entity is the parent for the purposes of the provisions of US GAAP mentioned in sub-paragraph (6)(a)(iii) (instead of the provisions mentioned in sub-paragraph (3)) and, accordingly, for the purposes of this Schedule the members of the relevant group are—

(a) the parent entity, and

(b) any other entity which, as at the end of the chargeable period, is a member of the group for the purposes of the provisions of US GAAP mentioned in sub-paragraph (6)(a)(iii).

(8) This paragraph applies in relation to periods of account ending on or after 1 January 2011.

Bank levy to be charged in relation to certain entities which are not members of groups U.K.

5 (1) The bank levy is charged if, as at the end of a period of account (“the chargeable period”) of an entity (“the relevant entity”), the relevant entity— U.K.

(a) is a UK resident bank, a building society or a relevant foreign bank, and

(b) does not fall within sub-paragraph (2) or (3).

(2) An entity falls within this sub-paragraph if it is an entity in relation to which paragraph 4(1) applies as at the end of the chargeable period.

(3) An entity (“A”) falls within this sub-paragraph if—

(a) there is another entity (“B”) in relation to which paragraph 4(1) applies as at the end of the chargeable period (or in relation to which paragraph 4(1) would apply if B had a period of account ending at the same time as the chargeable period), and

(b) A is (or would be) a member of the relevant group.

(4) This paragraph applies in relation to periods of account ending on or after 1 January 2011.

Steps for determining the amount of the bank levy U.K.

6 (1) This paragraph applies where the bank levy is charged as provided for by paragraph 4 or 5. U.K.

(2) Here are the steps to be taken to determine the amount of the bank levy.

• Step 1 In accordance with Part 4 of this Schedule, determine the amount of the chargeable equity and liabilities of the relevant group or the relevant entity (as the case may be).

• Step 2 If the amount of the chargeable equity and liabilities is not more than £20,000,000,000, the amount of the bank levy is nil and no further steps are taken. If the amount of the chargeable equity and liabilities is more than £20,000,000,000, go to Step 3.

• Step 3 Determine how much of the chargeable equity and liabilities are long term equity and liabilities and how much are short term liabilities.

• Step 4 Determine the proportion (“A%”) of the chargeable equity and liabilities which is long term equity and liabilities and the proportion (“B%”) of the chargeable equity and liabilities which is short term liabilities.

• Step 5 Reduce the amount of the long term chargeable equity and liabilities by an amount equal to A% of £20,000,000,000 and the amount of the short term chargeable liabilities by an amount equal to B% of £20,000,000,000.

• Step 6 If the chargeable period is 12 months, go straight to Step 7. If not, adjust the amount of the long term chargeable equity and liabilities and the amount of the short term chargeable liabilities as follows. Divide the amount by 365 and then multiply the result by the number of days in the chargeable period.

• Step 7 Charge the amount of the long term chargeable equity and liabilities at the rate of [F1 0.044%]. Charge the amount of the short term chargeable liabilities at the rate of [F2 0.088%].

(3) The bank levy is to be paid as provided for by Part 6 of this Schedule.

Textual Amendments

F1 Percentage in Sch. 19 para. 6(2) substituted (retrospective to 1.1.2012) by Finance Act 2012 (c. 14), Sch. 34 paras. 2(a), 4 (with Sch. 34 para. 12)

F2 Percentage in Sch. 19 para. 6(2) substituted (retrospective to 1.1.2012) by Finance Act 2012 (c. 14), Sch. 34 paras. 2(b), 4 (with Sch. 34 para. 12)

Special provision for chargeable periods falling wholly or partly before 1 January 2012 U.K.

7 (1) Paragraph 6(2) applies subject to this paragraph if some or all of the chargeable period falls before 1 January 2012. U.K.

(2) For Step 7 there is substituted— “ Step 7 Determine the proportion (“X%”) of the chargeable period (if any) falling in the period from 1 January 2011 to 28 February 2011. Determine the proportion (“Y%”) of the chargeable period (if any) falling in the period from 1 March 2011 to 30 April 2011. Determine the proportion (“Z%”) of the chargeable period (if any) falling in the period from 1 May 2011 to 31 December 2011. Charge X% of the amount of the long term chargeable equity and liabilities at the rate of 0.025%, Y% of that amount at the rate of 0.05%, Z% of that amount at the rate of 0.0375% and the balance (if any) at the rate of [F3 0.044%]. Charge X% of the amount of the short term chargeable liabilities at the rate of 0.05%, Y% of that amount at the rate of 0.1%, Z% of that amount at the rate of 0.075% and the balance (if any) at the rate of [F4 0.088%]. Add these results together to give the amount of the bank levy. ”

(3) If the chargeable period starts before 1 January 2011, for the purposes of Step 6 and Step 7 (as substituted by sub-paragraph (2)) the part of the period falling before 1 January 2011 is ignored and, accordingly, the period is treated as having started on 1 January 2011.

Textual Amendments

F3 Percentage in Sch. 19 para. 7(2) substituted (retrospective to 1.1.2012) by Finance Act 2012 (c. 14), Sch. 34 paras. 3(a), 4 (with Sch. 34 para. 12)

F4 Percentage in Sch. 19 para. 7(2) substituted (retrospective to 1.1.2012) by Finance Act 2012 (c. 14), Sch. 34 paras. 3(b), 4 (with Sch. 34 para. 12)