Helen Buchanan comments on the draft bank levy legislation
In 1971 Don McLean drove his Chevy to the levy but the levy was dry. Forty years later George Osborne’s bank levy is expected to raise £2.5bn a year to help replenish coffers that have run dry.
The draft legislation published on 21 October 2010 reflects consultation over the summer and contains few surprises. Some changes have been made in response to representations most of which are welcome.
The levy is accounts-based and is not deductible for corporation tax. It taxes the balance sheets of banks building societies and groups with banking operations in the UK. Non-sterling amounts are translated using the spot rate at the balance sheet date.
For UK-headed banking groups and building societies the levy taxes the global consolidated balance sheet so non-UK subsidiaries and non-UK branches are caught – even...
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Home >Articles > UK bank levy: review of the draft legislation
UK bank levy: review of the draft legislation
Helen Buchanan comments on the draft bank levy legislation
In 1971 Don McLean drove his Chevy to the levy but the levy was dry. Forty years later George Osborne’s bank levy is expected to raise £2.5bn a year to help replenish coffers that have run dry.
The draft legislation published on 21 October 2010 reflects consultation over the summer and contains few surprises. Some changes have been made in response to representations most of which are welcome.
The levy is accounts-based and is not deductible for corporation tax. It taxes the balance sheets of banks building societies and groups with banking operations in the UK. Non-sterling amounts are translated using the spot rate at the balance sheet date.
For UK-headed banking groups and building societies the levy taxes the global consolidated balance sheet so non-UK subsidiaries and non-UK branches are caught – even...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
