BKLM383000 | Chargeable equity and liabilities: deminimis limit for equity and liabilities: from 1 January 2021

Paragraph 15Z5 of Schedule 19

In order to reduce the overall compliance burden on a relevant group the equity and liabilities of some small entities may be excluded when determining the Bank Levy.

Where the relevant equity and liabilities a group member are less than £50 million they may be ignored for:

• the equity and liabilities of a chargeable UK resident;

• the equity and liabilities of a UK sub-group (see BKLM315500) where all members are UK resident, none of its members are designated FPE entity’s and no entity-by-entity election has been made;

• where a UK sub-group includes a non-resident entity or a designated FPE entity, the total equity and liabilities of the residual UK sub-group and each designated FPE;

• where a UK sub-group has made an entity-by-entity election, the total equity and liabilities of each UK resident entity member (whether or not a designated FPE entity); and

• the UK allocated equity and liabilities of a relevant foreign bank.

The total amount which may be ignored in respect of a relevant group may not exceed £200 million.