UK Bank Levy: Amendments to the UK Bank Levy Regime and its Interaction with French and German Bank LeviesSullivan & Cromwell LLP - December 21, 2011
In the UK Budget of June 2010, the Chancellor of the Exchequer announced a tax based on banks’ balance sheets, known as the “bank levy”. The bank levy took effect from 1 January 2011, and applies to UK-headed banking groups and building society groups, and non-UK-headed banking groups as well as non-UK banks, in each case with operations in the UK.
Recent updates to the bank levy regime include:
- An increase in the rates for 2012;
- Arrangements with France and Germany to prevent double taxation; and
- Minor amendments to the UK framework.
For further detail on the scope of the bank levy, please see our client memoranda of 10 November 2010 and 13 December 2010. For a comparison of the respective bank levy regimes of the UK, France and Germany, please see our client memorandum of 6 May 2011.