ÑÇÖÞÉ«ÇéÍø

D7.707 Bank levy—overview

The bank levy is a charge on certain types of equity and liabilities reported in banks' balance sheets, with short-term chargeable liabilities subject to higher rates than long-term chargeable equity and liabilities. See T4.111 for details of the current, historical and future rates. Note that from 1 January 2016, the rate of the bank levy 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 D7.709A for further details).

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

1. Ìý

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

2. 1. Ìý

      –ÌýÌýÌýÌý UK banking groups and building society groups, foreign banking groups and relevant non-banking groups

   2. Ìý

      –ÌýÌýÌýÌý individual entities which are not members of groups if the entity is a UK resident bank,