ARTICLE · 23 JUNE 2010

UK Bank Levy

CMS Cameron McKenna Nabarro Olswang

Explore more from CMS Cameron McKenna Nabarro Olswang

The Chancellor of the Exchequer today announced plans as part of the Budget for a bank levy based on balance sheet liabilities to be introduced from 1 January 2011.

United KingdomTax

Keith Gregory

Samantha Dames

Paul Edmondson

Nicholas Stretch

The Chancellor of the Exchequer today announced plans as part of the Budget for a bank levy based on balance sheet liabilities to be introduced from 1 January 2011. It appears that the amount raised will just be used for general purposes rather than accumulating within any designated fund.

This levy will affect all UK banks and banking groups as well as non-UK banking groups with UK operations, although only in both cases if they have relevant liabilities of £20 billion or more. Tier 1 capital, insured retail deposits, repos secured on sovereign debt and policyholder liabilities of retail insurance businesses within banking groups will not be included as liabilities for this purpose. It is also proposed that only net derivative liabilities will be included.

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