the bank levy is charged as provided for by paragraph 4 (groups), and

the members of a UK sub-group which are UK resident entities are also members of at least one larger unconsolidated sub-group.

the conditions in paragraph 15B(a) to (c) and (e) are met in respect of the group, but

the condition in paragraph 15B(d) (consolidated financial statements) is not met in respect of the group.

it is a chargeable UK resident entity (whether or not a designated FPE entity), and

it is a member of at least one unconsolidated sub-group (see paragraph 15O(2)).

it is a member of a UK sub-group in respect of which an entity-by-entity election has been made under paragraph 15L (whether or not it is a designated FPE entity), or

it is a designated FPE entity and a member of a UK sub-group in respect of which no entity-by-entity election has been made.

UK connected liabilities to a chargeable UK resident entity which is a member of the relevant group,

UK connected liabilities to a UK sub-group of the relevant group,

UK connected liabilities to a relevant foreign bank which is a member of the relevant group, and

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.

assets of a non-UK resident entity, or

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).

the bank levy is charged as provided for by paragraph 4 (groups),

an entity (“M”) within sub-paragraph (5) has liabilities to another entity (“N”) not within that sub-paragraph (“M’s liabilities”),

M, or another member of the relevant group, recognises, as assets, amounts (“N’s liabilities”) that are due to any member of the relevant group from N or another entity not within sub-paragraph (5),

there is in place an agreement which makes net settlement provision, and

that provision is legally effective and enforceable.

if a netting event occurs, or

at the option of M or N, if a netting event occurs.

all M’s liabilities, and liabilities of other entities within sub-paragraph (5), to N or another entity which is not within that sub-paragraph (so far as covered by the provision mentioned in sub-paragraph (1)(d)), and

all N’s liabilities (so far as covered by that provision).

at the option of M, but not at the option of N, if a netting event occurs, or

at the option of N, but not at the option of M, if a netting event occurs,

a UK resident entity which is a member of a UK sub-group, or

a chargeable UK resident entity.

“agreement” includes an agreement which forms part of a multi-lateral agreement, arrangement or trading facility,

if N is a relevant foreign bank which is a member of the relevant group, liabilities of M to N are to be ignored so far as N recognises assets in respect of those liabilities as assets of the permanent establishment through which N carries on a trade in the United Kingdom as determined at Step 2 in paragraph 24(1),

references to amounts due from N or another entity not within sub-paragraph (5) include securities provided by M, or another member of the relevant group, to N or another entity not within sub-paragraph (5) as collateral, but only where M or that other member recognises those securities in its balance sheet or statement of financial position, and

the bank levy is charged as provided for by paragraph 5 (entities which are not members of groups),

the relevant entity (“M”) is a UK resident entity,

M has liabilities to another entity (“M’s liabilities”),

M recognises, as assets, amounts due from that other entity (“N”) to M (“N’s liabilities”),

there is in place an agreement between M and N which makes net settlement provision, and

that provision is legally effective and enforceable.

if a netting event occurs, or

at the option of M or N, if a netting event occurs.

all M’s liabilities (so far as covered by the provision mentioned in sub-paragraph (1)(e)), and

all N’s liabilities (so far as covered by that provision).

at the option of M, but not at the option of N, if a netting event occurs, or

at the option of N, but not at the option of M, if a netting event occurs,

“agreement” includes an agreement which forms part of a multi-lateral agreement, arrangement or trading facility,

references to amounts due from N include securities provided by M to N as collateral, but only where M recognises those securities in its balance sheet or statement of financial position, and

are covered by the provision mentioned in paragraph 15S(1)(d) or 15T(1)(e), and

are not excluded liabilities.

M, or

in a case within paragraph 15S, another member of the relevant group,

if N’s net settlement liabilities include liabilities of a relevant foreign bank which is a member of the relevant group, X% (as determined at Step 2 in paragraph 24(1)) of the assets corresponding to the liabilities of the relevant foreign bank are to be disregarded for the purposes of sub-paragraph (3), and

if sub-paragraph (1) applies in relation to more than one entity within paragraph 15S(5), no part of an asset may be included in the net settlement assets of more than one such entity, and

if an asset, or part of an asset, is included for the purposes of paragraph 27D in the net settlement assets of a relevant foreign bank which is a member of the relevant group, the asset (or part) is not to be included in M’s net settlement assets for the purposes of this paragraph.

the long term liabilities are reduced by A% of M’s net settlement assets, and

the short term liabilities are reduced by B% of those assets.