Paragraph 15W F1

(1)

Paragraph 15X applies in relation to a chargeable UK sub-group or entity if Conditions A to C are met.

(2)

Condition A is that the bank levy is charged as provided for by paragraph 4 (groups).

(3)

Condition B is that, as at the end of the chargeable period, the assets of a relevant group member include—

(a)

qualifying loss absorbing instruments, or

(b)

assets representing qualifying loss absorbing instruments.

(4)

A loss absorbing instrument is “qualifying” for the purposes of this paragraph and paragraph 15X if—

(a)

it is issued by a non-UK resident entity which is a subsidiary of a UK resident entity within sub-paragraph (5), and

(b)

such other conditions as may be specified in regulations made by the Treasury are met in respect of the instrument.

(5)

A UK resident entity is within this sub-paragraph if—

(a)

the entity is a member of the relevant group, and

(b)

if the relevant group is a relevant non-banking group, the entity is a UK resident bank or a subsidiary of a UK resident bank.

(6)

For the purposes of Condition B, “relevant group member” means—

(a)

the chargeable UK sub-group or entity,

(b)

another UK sub-group of the relevant group, or

(c)

a chargeable UK resident entity which is a member of the relevant group.

(7)

Condition C is that, as at the end of the chargeable period, the liabilities of the chargeable UK sub-group or entity include—

(a)

tier one capital equity and liabilities (other than tier one capital equity and liabilities excluded by paragraph 30), or

(b)

loss absorbing instruments, other than tier one capital equity and liabilities,

in respect of which such conditions as may be specified in regulations made by the Treasury are met.

Annotations

F1: 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