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SCHEDULES

SCHEDULE 19U.K.The bank levy

Part 3U.K.Groups covered by the bank levy

Definitions of “ UK banking group”, “building society group”, “foreign banking group” and “relevant non-banking group” U.K.

8U.K. The relevant group is a “ UK banking group” if—

(a)the group is a banking group (see paragraph 12), and

(b) the parent entity is a UK resident entity.

9U.K.The relevant group is a “building society group” if the parent entity is a building society.

10U.K.The relevant group is a “foreign banking group” if—

(a)the group is a banking group (see paragraph 12), and

(b)the parent entity is a non-UK resident entity.

11U.K.The relevant group is a “relevant non-banking group” if—

(a) the members of the group include at least one UK resident bank or relevant foreign bank, and

(b)the group is neither a banking group nor a building society group.

Definition of “banking group”U.K.

12(1)The relevant group is a “banking group” if—U.K.

(a)condition A, B, C or D is met, and

(b)the exempt activities condition is not met (see paragraph 13).

(2) Condition A is that the parent entity is a UK resident bank (see paragraph 80) or a relevant foreign bank (see paragraph 78).

(3)Condition B is that—

(a)the parent entity is an investment entity, and

(b) the members of the relevant group include at least one UK resident bank to which sub-paragraph (6) applies or relevant foreign bank to which that sub-paragraph applies.

(4)Condition C is that—

(a)the parent entity is a non-UK resident entity to which sub-paragraph (8) applies, and

(b) the members of the relevant group include at least one UK resident bank or relevant foreign bank.

(5)Condition D is that—

(a)the parent entity is an investment entity,

(b)the members of the relevant group include at least one non-UK resident entity to which both sub-paragraphs (6) and (8) apply, and

(c) those members also include at least one UK resident bank or relevant foreign bank.

(6)This sub-paragraph applies to an entity (“E”) if, for the purposes of the applicable accounting provisions, E is not a subsidiary of any other entity apart from investment entities.

(7)The applicable accounting provisions ” means—

(a)the provisions mentioned in paragraph 4(3), F1...

F1(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8)This sub-paragraph applies to an entity (“F”) if—

(a) F would be a UK resident bank if—

(i) F were a UK resident entity,

(ii)it carried on its activities in the United Kingdom,

(iii) where it would be required to be an authorised person for the purposes of FISMA 2000 in order to carry on those activities in the United Kingdom, it were an authorised person with permission to carry on those activities, and

(iv)where those activities consist wholly or mainly of any of the relevant [F2regulated] activities described in the provisions mentioned in paragraph 79(b) to (f), as a result of carrying on those activities and having such permission it would be a BIPRU 730k firm and [F3an IFPRU 730k firm and a full scope IFPRU investment firm,], or

(b) F is a member of a partnership which is a non-UK resident entity and F would be a UK resident bank if—

(i) both F and the partnership were UK resident entities,

(ii)the partnership carried on its activities in the United Kingdom,

(iii) where the partnership would be required to be an authorised person for the purposes of FISMA 2000 in order to carry on those activities in the United Kingdom, the partnership were an authorised person with permission to carry on those activities, and

(iv)where those activities consist wholly or mainly of any of the relevant [F4regulated] activities described in the provisions mentioned in paragraph 79(b) to (f), as a result of carrying on those activities and having such permission the partnership would be [F5an IFPRU 730k firm and a full scope IFPRU investment firm].

(9)“Investment entity”—

(a)means an entity the business of which consists wholly or mainly of, and the principal part of the income of which is derived from, the making of investments, and

(b)also includes any savings bank or other bank for savings.

Textual Amendments

F1Sch. 19 para. 12(7)(b) and preceding word omitted (with effect in accordance with Sch. 9 para. 35 of the amending Act) by virtue of Finance Act 2018 (c. 3), Sch. 9 para. 23

F2Word in Sch. 19 para. 12(8)(a)(iv) inserted (1.1.2014 retrospective) by Finance (No. 2) Act 2015 (c. 33), s. 20(2)(a)(i)(8)

F3Words in Sch. 19 para. 12(8)(a)(iv) substituted (1.1.2014 retrospective) by Finance (No. 2) Act 2015 (c. 33), s. 20(2)(a)(ii)(8)

F4Word in Sch. 19 para. 12(8)(b)(iv) inserted (1.1.2014 retrospective) by Finance (No. 2) Act 2015 (c. 33), s. 20(2)(b)(i)(8)

F5Words in Sch. 19 para. 12(8)(b)(iv) substituted (1.1.2014 retrospective) by Finance (No. 2) Act 2015 (c. 33), s. 20(2)(b)(ii)(8)

13(1)The exempt activities condition is met for the purposes of paragraph 12(1)(b) if—U.K.

(a)at least 90% of the trading income of the relevant group for the chargeable period derives from exempt activities, or

(b)at least 50% of the trading income of the relevant group for the chargeable period derives from non-financial trading activities.

(2)For this purpose, the trading income of the relevant group for the chargeable period—

(a)consists of the items mentioned in sub-paragraph (3), and

(b)is to be determined by reference to—

(i)the amounts recognised in the group's consolidated financial statements for the chargeable period as prepared under [F6international accounting standards], or

(ii)if no such financial statements are prepared, the amounts which would have been so recognised had consolidated financial statements for the group been prepared for the chargeable period under international accounting standards.

(3)The items referred to in sub-paragraph (2)(a) are—

(a)the group's gross income for the chargeable period arising from its activities (other than net-basis activities) without taking account of any deductions (whether for expenses or otherwise), and

(b)the group's net income for the chargeable period arising from its net-basis activities.

(4)In this paragraph—

Textual Amendments

F6Words in Sch. 19 para. 13(2)(b)(i) substituted (with effect in accordance with Sch. 9 para. 35 of the amending Act) by Finance Act 2018 (c. 3), Sch. 9 para. 24(a)

F7Words in Sch. 19 para. 13(4) omitted (with effect in accordance with Sch. 9 para. 35 of the amending Act) by virtue of Finance Act 2018 (c. 3), Sch. 9 para. 24(b)

F8Words in Sch. 19 para. 13(4) substituted (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 4 para. 14 (with reg. 7)

F9Words in Sch. 19 para. 13(4) substituted (with effect in accordance with Sch. 9 para. 35 of the amending Act) by Finance Act 2018 (c. 3), Sch. 9 para. 24(c)