Commentary

D7.707 Overview of the bank levy

Corporate tax
Corporate tax | Commentary

D7.707 Overview of the bank levy

Corporate tax | Commentary

Bank levy

D7.707 Overview of the bank levy

The bank levy came into force for periods of account ending on or after 1 January 2011 and introduced a charge on certain types of equity and liabilities reported in banks' balance sheets. See T4.111 for details of the current, historical and future rates. Note that from 1 January 2016, the rate of the bank levy is gradually reduced over a five year period1, alongside the introduction of the banking companies surcharge regime (D7.712). For chargeable periods ending on or after 1 January 2021, the bank levy is amended2 to limit its scope to the UK-based equity and liabilities of relevant groups and relevant entities (see D7.710A for further details).

The key features of the bank levy regime are as follows3:

  1.  

    •     there is a levy on banks' balance sheets which applies to the following chargeable entities (D7.708):

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