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Finance Act 2011

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This is the original version (as it was originally enacted).

Joint and several liability

53(1)This paragraph applies where the bank levy is charged as provided for by paragraph 4.

(2)The entities within sub-paragraph (3) are jointly and severally liable for the bank levy liability of the relevant group’s responsible member (see paragraph 54) for an accounting period; and HMRC may enforce that liability against any of those entities accordingly.

(3)The entities within this sub-paragraph are—

(a)if the relevant group is a relevant non-banking group, all relevant members of the relevant group within the charge to corporation tax as at the end of the chargeable period, or

(b)otherwise, all members of the relevant group within the charge to corporation tax as at the end of the chargeable period.

(4)In sub-paragraph (3)(a) “relevant member” means a member of the relevant group which—

(a)is a member of a relevant UK banking sub-group,

(b)is a UK resident bank covered by paragraph 19(10),

(c)is an entity covered by paragraph 19(11), or

(d)is a relevant foreign bank covered by paragraph 19(17).

(5)An entity’s liability by virtue of sub-paragraph (2) is not affected if, after the end of the chargeable period, it ceases to be within the charge to corporation tax.

(6)An entity is not within sub-paragraph (3) if, as at the end of the chargeable period, it is—

(a)a securitisation company,

(b)a covered bond vehicle, or

(c)an entity of a kind prescribed by an order made by the Treasury.

(7)In sub-paragraph (6)—

  • “capital market arrangement” has the same meaning as in section 72B(1) of the Insolvency Act 1986 (see paragraph 1 of Schedule 2A to that Act);

  • “covered bond vehicle” means a limited liability partnership—

    (a)

    which is a party to a capital market arrangement, or a transaction in pursuance of a capital market arrangement,

    (b)

    whose trade or business (ignoring any incidental activities) consists wholly of one or both of the following—

    (i)

    providing guarantees, and

    (ii)

    acquiring, owning and managing assets directly or indirectly forming the whole or part of the security for the capital market arrangement, and

    (c)

    which is within the charge to corporation tax;

  • “limited liability partnership” includes an entity established under the law of a territory outside the United Kingdom of a similar character to a limited liability partnership;

  • “securitisation company” means a company of the kind mentioned in paragraphs (a) to (e) of section 83(2) of FA 2005 or paragraphs (a) to (e) of regulation 4(2) of the Taxation of Securitisation Companies Regulations 2006 (S.I. 2006/3296).

(8)The responsible member’s “bank levy liability” for an accounting period—

(a)is the member’s liability for corporation tax for that period as calculated in accordance with paragraph 8 of Schedule 18 to FA 1998 so far as the tax calculated consists of the bank levy by virtue of paragraph 50(2) of this Schedule, and

(b)includes any interest or penalties payable in relation to that tax so far as it consists of the bank levy.

(9)An order under sub-paragraph (6) may have retrospective effect in relation to—

(a)any chargeable period in which the order is made, or

(b)in the case of an order made on or before 31 December 2011, any chargeable period ending on or after 1 January 2011.

(10)Orders under sub-paragraph (6) are to be made by statutory instrument.

(11)A statutory instrument containing an order under sub-paragraph (6) is subject to annulment in pursuance of a resolution of the House of Commons.

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