Finance Act 2011

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

(2) In this paragraph and paragraph 55 “ chargeable member ” means a member of the relevant group within paragraph 53(3).

(3) The relevant group's responsible member is the entity (“E”) in relation to which the following requirements are met—

(a) E is a chargeable member of the relevant group,

(b) E has an accounting period for corporation tax purposes which is the same as the chargeable period,

[F1 (c) either—

(i) during the nomination period the parent entity, or another entity acting on behalf of the parent entity, nominated E to HMRC to be the responsible member, or

(ii) the renewal conditions are met in relation to E, and

(d) HMRC did not—

(i) in a case within paragraph (c)(i), reject E’s nomination;

(ii) in a case within paragraph (c)(ii), make a determination under paragraph 55A.]

See [F2 paragraphs 55 and 55A] for further provision about nominations [F3 and renewals].

[F4 (3A) The renewal conditions are met in relation to E if—

(a) E was the relevant group’s responsible member at the end of the immediately preceding chargeable period, and

(b) neither the parent entity, nor another entity acting on behalf of the parent entity, nominated an entity other than E during the nomination period.

(3B) In sub-paragraphs (3) and (3A), “nomination period” means the first 45 days of the chargeable period.]

(4) If—

(a) no entity meets the requirements in sub-paragraph (3) and the relevant group is a UK banking group or a building society group, and

(b) the parent entity is a chargeable member of the relevant group,

the responsible member is the parent entity.

(5) If no entity meets the requirements in sub-paragraph (3) and the relevant group is a foreign banking group or a relevant non-banking group, the responsible member is the entity in relation to which the following requirements are met—

(a) it is a chargeable member of the relevant group,

(b) it has an accounting period for corporation tax purposes which is the same as the chargeable period, and

(c) it is—

(i) the relevant member with the largest amount of [F5 UK-based equity and liabilities or UK-allocated equity and liabilities], or

(ii) if the relevant member with the largest amount of [F6 UK-based equity and liabilities or UK-allocated equity and liabilities] is a [F7 UK sub-group], the entity which is the parent or parent undertaking for that sub-group.

(6) In sub-paragraph (5)(c) “relevant member” [F8 means]—

[F9 (a) a chargeable UK resident entity which is a member of the relevant group;

(b) a UK sub-group of the relevant group;

(c) a relevant foreign bank which is a member of the relevant group.]

[F10 (6A) Sub-paragraph (6B) applies if—

(a) HMRC rejects E’s nomination (see sub-paragraph (3)(d)(i)), and

(b) within the period of 30 days after the day on which HMRC rejects the nomination, HMRC and the parent entity, or another entity acting on behalf of the parent entity, agree that another entity (“A”) which is a chargeable member of the relevant group is to be the relevant group’s responsible member.

(6B) Where this sub-paragraph applies—

(a) A is the relevant group’s responsible member, and

(b) sub-paragraphs (4) and (5) do not apply.]

(7) If no entity meets the requirements of sub-paragraph (3) or sub-paragraph (4) or (5) (as the case may be), [F11 and sub-paragraph (6B) does not apply,] the responsible member is the member of the relevant group determined by HMRC within the period of 30 days after the end of the chargeable period.

(8) HMRC must give written notice of a determination under sub-paragraph (7) to the member concerned within that period.

(9) HMRC cannot determine as the responsible member under sub-paragraph (7)—

(a) an entity within paragraph 53(6)(a) or (b), or

(b) an entity of a kind prescribed by an order under paragraph 53(6)(c).

(10) In relation to chargeable periods arising by virtue of paragraph 41 (chargeable periods: entities which do not prepare financial statements), the Treasury may by order modify the time limit applying to determinations under sub-paragraph (7) (including determinations in cases to which paragraph 65(3) applies).

(11) An order under sub-paragraph (10) may amend paragraphs 41 to 44 of Schedule 18 to FA 1998 (discovery assessments and determinations) in relation to any bank levy charged by virtue of paragraph 41 of this Schedule.

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

(13) A statutory instrument containing an order under sub-paragraph (10) is subject to annulment in pursuance of a resolution of the House of Commons.

(14) An order under sub-paragraph (10) 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.

Textual Amendments

F1 Sch. 19 para. 54(3)(c)(d) substituted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 9 para. 20(2)

F2 Words in Sch. 19 para. 54(3) substituted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 9 para. 20(3)(a)

F3 Words in Sch. 19 para. 54(3) inserted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 9 para. 20(3)(b)

F4 Sch. 19 para. 54(3A)(3B) inserted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 9 para. 20(4)

F5 Words in Sch. 19 para. 54(5)(c)(i) substituted (with effect in accordance with Sch. 9 para. 35 of the amending Act) by virtue of Finance Act 2018 (c. 3), Sch. 9 para. 13(2)(a)

F6 Words in Sch. 19 para. 54(5)(c)(ii) substituted (with effect in accordance with Sch. 9 para. 35 of the amending Act) by virtue of Finance Act 2018 (c. 3), Sch. 9 para. 13(2)(b)(i)

F7 Words in Sch. 19 para. 54(5)(c)(ii) substituted (with effect in accordance with Sch. 9 para. 35 of the amending Act) by Finance Act 2018 (c. 3), Sch. 9 para. 13(2)(b)(ii)

F8 Word in Sch. 19 para. 54(6) inserted (with effect in accordance with Sch. 9 para. 35 of the amending Act) by Finance Act 2018 (c. 3), Sch. 9 para. 13(3)(a)

F9 Sch. 19 para. 54(6)(a)-(c) substituted for Sch. 19 para. 54(6)(a)(b) (with effect in accordance with Sch. 9 para. 35 of the amending Act) by Finance Act 2018 (c. 3), Sch. 9 para. 13(3)(b)

F10 Sch. 19 para. 54(6A)(6B) inserted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 9 para. 20(5)

F11 Words in Sch. 19 para. 54(7) inserted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 9 para. 20(6)