Steps for determining the amount of the bank levy
6(1)This paragraph applies where the bank levy is charged as provided for by paragraph 4 or 5.
(2)Here are the steps to be taken to determine the amount of the bank levy.
Step 1
In accordance with Part 4 of this Schedule, determine the amount of the chargeable equity and liabilities of the relevant group or the relevant entity (as the case may be).
Step 2
If the amount of the chargeable equity and liabilities is not more than £20,000,000,000, the amount of the bank levy is nil and no further steps are taken.
If the amount of the chargeable equity and liabilities is more than £20,000,000,000, go to Step 3.
Step 3
Determine how much of the chargeable equity and liabilities are long term equity and liabilities and how much are short term liabilities.
Step 4
Determine the proportion (“A%”) of the chargeable equity and liabilities which is long term equity and liabilities and the proportion (“B%”) of the chargeable equity and liabilities which is short term liabilities.
Step 5
Reduce the amount of the long term chargeable equity and liabilities by an amount equal to A% of £20,000,000,000 and the amount of the short term chargeable liabilities by an amount equal to B% of £20,000,000,000.
Step 6
If the chargeable period is 12 months, go straight to Step 7.
If not, adjust the amount of the long term chargeable equity and liabilities and the amount of the short term chargeable liabilities as follows.
Divide the amount by 365 and then multiply the result by the number of days in the chargeable period.
Step 7
Charge the amount of the long term chargeable equity and liabilities at the rate of 0.039%.
Charge the amount of the short term chargeable liabilities at the rate of 0.078%.
(3)The bank levy is to be paid as provided for by Part 6 of this Schedule.