Commentary

D7.711 Equity and liabilities excluded from the bank levy

Corporate tax
Corporate tax | Commentary

D7.711 Equity and liabilities excluded from the bank levy

Corporate tax | Commentary

D7.711 Equity and liabilities excluded from the bank levy

Various categories of equity and liabilities are excluded from the bank levy. These are listed in the legislation and in addition there is considerable flexibility for HM Treasury to add additional categories of excluded equity and liabilities, and/or to amend or repeal the existing exclusions1. Currently, the excluded equity and liabilities consist of2:

  1.  

    •     'protected' deposits, ie retail deposits which are subject to a suitable form of depositor protection scheme. In a UK context this means retail deposits covered by the Financial Services Compensation Scheme (and comparable schemes3), for which the maximum amount of protection per depositor per authorised institution is currently £85,000. Deposits protected by comparable schemes outside the UK will also be treated as excluded liabilities. Special rules applied for chargeable periods ending on or before 1 January 2015, where deposit takers who operate within a depositor protection scheme are required to pay levies to support the operation of the scheme. Where a depositor protection scheme calculates liabilities by reference to a proportion of all of the entity's total deposit

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