Finance Act 2011

Joint and several liability U.K.

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

(2) The entities within sub-paragraph (3) are jointly and severally liable for the bank levy liability of the relevant group's responsible member (see paragraph 54) for an accounting period; and HMRC may enforce that liability against any of those entities accordingly.

[F1 (2A) But sub-paragraph (2) is subject to paragraph 53A (ring-fenced bodies).]

(3) The entities within this sub-paragraph are—

(a) if the relevant group is a relevant non-banking group, all relevant members of the relevant group within the charge to corporation tax as at the end of the chargeable period, or

(b) otherwise, all members of the relevant group within the charge to corporation tax as at the end of the chargeable period.

(4) In sub-paragraph (3)(a) “ relevant member ” means a member of the relevant group which—

(a) is a member of a [F2 UK sub-group],

[F3 (b) is a chargeable UK resident entity which is a banking entity (see paragraph 15C(2)),]

F4 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) is a relevant foreign bank [F5 which is a member of the relevant group].

(5) An entity's liability by virtue of sub-paragraph (2) is not affected if, after the end of the chargeable period, it ceases to be within the charge to corporation tax.

(6) An entity is not within sub-paragraph (3) if, as at the end of the chargeable period, it is—

(a) a securitisation company,

(b) a covered bond vehicle, or

(c) an entity of a kind prescribed by an order made by the Treasury.

(7) In sub-paragraph (6)—

• “ capital market arrangement ” has the same meaning as in section 72B(1) of the Insolvency Act 1986 (see paragraph 1 of Schedule 2A to that Act);

• “ covered bond vehicle ” means a limited liability partnership—

  (a)

  which is a party to a capital market arrangement, or a transaction in pursuance of a capital market arrangement,

  (b)

  whose trade or business (ignoring any incidental activities) consists wholly of one or both of the following—

  (i)

  providing guarantees, and

  (ii)

  acquiring, owning and managing assets directly or indirectly forming the whole or part of the security for the capital market arrangement, and

  (c)

  which is within the charge to corporation tax;

• “ limited liability partnership ” includes an entity established under the law of a territory outside the United Kingdom of a similar character to a limited liability partnership;

• “ securitisation company ” means a company of the kind mentioned in paragraphs (a) to (e) of section 83(2) of FA 2005 or paragraphs (a) to (e) of regulation 4(2) of the Taxation of Securitisation Companies Regulations 2006 ( S.I. 2006/3296).

(8) The responsible member's “bank levy liability” for an accounting period—

(a) is the member's liability for corporation tax for that period as calculated in accordance with paragraph 8 of Schedule 18 to FA 1998 so far as the tax calculated consists of the bank levy by virtue of paragraph 50(2) of this Schedule, and

(b) includes any interest or penalties payable in relation to that tax so far as it consists of the bank levy.

(9) An order under sub-paragraph (6) may have retrospective effect in relation to—

(a) any chargeable period in which the order is made, or

(b) in the case of an order made on or before 31 December 2011, any chargeable period ending on or after 1 January 2011.

(10) Orders under sub-paragraph (6) are to be made by statutory instrument.

(11) A statutory instrument containing an order under sub-paragraph (6) is subject to annulment in pursuance of a resolution of the House of Commons.

Textual Amendments

F1 Sch. 19 para. 53(2A) inserted (with effect in accordance with Sch. 9 para. 36 of the amending Act) by Finance Act 2018 (c. 3), Sch. 9 para. 18

F2 Words in Sch. 19 para. 53(4)(a) substituted (with effect in accordance with Sch. 9 para. 35 of the amending Act) by Finance Act 2018 (c. 3), Sch. 9 para. 12(a)

F3 Sch. 19 para. 53(4)(b) substituted (with effect in accordance with Sch. 9 para. 35 of the amending Act) by Finance Act 2018 (c. 3), Sch. 9 para. 12(b)

F4 Sch. 19 para. 53(4)(c) 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. 12(c)

F5 Words in Sch. 19 para. 53(4)(d) substituted (with effect in accordance with Sch. 9 para. 35 of the amending Act) by Finance Act 2018 (c. 3), Sch. 9 para. 12(d)

[F6 53A (1) This paragraph applies where— U.K.

(a) an entity (the “ring-fenced entity”) which is a member of the relevant group is—

(i) a ring-fenced body, or

(ii) a member of a ring-fenced body sub-group,

or both, and

(b) the entity is not the relevant group’s responsible member.

(2) The ring-fenced entity is jointly and severally liable for the bank levy liability of the relevant group’s responsible member under paragraph 53(2) only so far as the liability is—

(a) attributable to the ring-fenced body sub-group of which the ring-fenced entity is a member, or

(b) if the ring-fenced entity is not a member of a ring-fenced body sub-group, attributable to that entity.

(3) For the purposes of sub-paragraph (2)—

(a) the bank levy liability that is attributable to a ring-fenced body sub-group is the amount of the bank levy that would be charged for the chargeable period in relation to that sub-group if it were “the relevant group” for the purposes of this Part;

(b) the bank levy liability that is attributable to a ring-fenced entity is the amount of the bank levy that would be charged for the chargeable period in relation to that entity if it were “the relevant entity” for the purposes of this Part.

(4) “Ring-fenced body” has the same meaning as in the Financial Services and Markets Act 2000 (see section 142A of that Act).

(5) A “ring-fenced body sub-group” is a group of entities consisting of—

(a) an RFB parent undertaking and its subsidiaries, or

(b) a ring-fenced body, which is not a subsidiary of an RFB parent undertaking, and the ring-fenced body’s subsidiaries.

(6) “RFB parent undertaking” means a body corporate which is subject to rules made under section 192JA of the Financial Services and Markets Act 2000 (rules applying to parent undertakings of ring-fenced bodies).]

Textual Amendments

F6 Sch. 19 para. 53A inserted (with effect in accordance with Sch. 9 para. 36 of the amending Act) by Finance Act 2018 (c. 3), Sch. 9 para. 19