Clifford Chance
UK Bank levy – revised draft legislation published
10 January 2011
The UK Government has now published the draft legislation
introducing the bank levy for inclusion in the Finance Bill 2011. The
legislation is very similar to previously published drafts. The most
significant new development is the setting of the rate. The main rate
will be 0.075% from 1 January 2012 with an initial main rate of 0.05%
applying for the first year. The levy will apply to the global
consolidated balance sheets of UK banking groups and the balance
sheets of standalone UK banks. In relation to foreign banks and
banking groups operating in the UK, the levy will be assessed on
their aggregated subsidiary and branch balance sheets.
