SCHEDULES

SCHEDULE 9Bank levy

PART 1Chargeable equity and liabilities

6Definition of “UK allocated equity and liabilities”

1

Paragraph 27 (UK allocated equity and liabilities: determining the amount of the foreign bank’s chargeable equity and liabilities) is amended in accordance with this paragraph.

2

In sub-paragraph (2)—

a

in the words before paragraph (a), for “chargeable equity and liabilities” substitute “adjusted equity and liabilities”,

b

in paragraph (b), for “paragraphs 25(8)” substitute “paragraph 27D(1)”, and

c

in paragraph (c), for sub-paragraph (i) (but not the “and” following it) substitute—

i

the amount of the entity’s high quality liquid assets as at the end of that period, other than—

a

any asset which for the purposes of an adjustment under paragraph (b) is an asset to which paragraph 27D(1) applies;

b

in a case where the bank levy is charged as provided for by paragraph 4 (groups), any asset to which paragraph 15U(1) applies for the purposes of adjusting the amount of the equity and liabilities of another member of the relevant group (see Step 2 in paragraph 15N(1)),

3

In sub-paragraph (3), for paragraph (b) (but not the “and” following it) substitute—

b

that financial asset is not an asset which—

i

for the purposes of an adjustment under sub-paragraph (2)(b), is an asset to which paragraph 27D(1) applies, or

ii

in a case where the bank levy is charged as provided for by paragraph 4 (groups), is an asset to which paragraph 15U(1) applies for the purposes of adjusting the amount of the equity and liabilities of another member of the relevant group under Step 2 in paragraph 15N(1),

4

In sub-paragraph (5), in the words before paragraph (a), for “paragraph 17(7) or 19(17)” substitute “paragraph 15(2)(b)”.

5

In sub-paragraph (5), for paragraphs (a) and (b) substitute—

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, and

c

UK connected liabilities to any other relevant foreign bank which is a member of the relevant group.

6

After sub-paragraph (5) insert—

5A

In sub-paragraph (5), references to “UK connected liabilities” have the same meaning as in paragraph 15R(2) (see paragraph 15R(3) to (5)).