SCHEDULES
SCHEDULE 19The bank levy
Part 4Chargeable equity and liabilities
F1Step 2 in paragraph 15N: equity and liability adjustments and netting
15R
1
This paragraph applies if the bank levy is charged as provided for by paragraph 4 (groups).
2
The following liabilities of a chargeable UK sub-group or entity are to be left out—
a
UK connected liabilities to a chargeable UK resident entity which is a member of the relevant group,
b
UK connected liabilities to a UK sub-group of the relevant group,
c
UK connected liabilities to a relevant foreign bank which is a member of the relevant group, and
d
in the case of an entity to which paragraph 15Q applies, UK connected liabilities of the entity to another UK resident entity which is a member of the same UK sub-group.
3
For the purposes of sub-paragraph (2)(a) and (d), liabilities to a UK resident entity are “UK connected liabilities” except so far as the entity’s assets corresponding to the liabilities are assets of a foreign permanent establishment in respect of which an election under paragraph 15D has been made (as determined at Step 2 in paragraph 15Z1).
4
For the purposes of sub-paragraph (2)(b), liabilities to a UK sub-group are “UK connected liabilities” except so far as the sub-group’s assets corresponding to the liabilities are—
a
assets of a non-UK resident entity, or
5
For the purposes of sub-paragraph (2)(c), liabilities to a relevant foreign bank are “UK connected liabilities” so far as the bank’s assets corresponding to the liabilities are assets of the permanent establishment through which the bank carries on a trade in the United Kingdom as determined at Step 2 in paragraph 24(1).
Sch. 19 paras. 15-15Z5 and cross-headings substituted for Sch. 19 paras. 15-23 (with effect in accordance with Sch. 9 para. 35 of the amending Act) by Finance Act 2018 (c. 3), Sch. 9 para. 2