|
| |
|
37 (1) | Financial services compensation scheme liabilities are excluded. |
| |
(2) | “Financial services compensation scheme liabilities” means liabilities |
| |
| |
(a) | levies payable by virtue of section 213(2)(b) of FISMA 2000, or |
| |
(b) | levies payable for purposes comparable with those mentioned in |
| 5 |
section 213(2)(b) of that Act in relation to a scheme which— |
| |
(i) | operates outside the United Kingdom, and |
| |
(ii) | is comparable to the Financial Services Compensation |
| |
Scheme under section 213 of that Act. |
| |
38 (1) | Liabilities representing clients’ money held by an authorised person are |
| 10 |
| |
(2) | “Authorised person” means an entity which— |
| |
(a) | is an authorised person for the purposes of FISMA 2000 (see section |
| |
| |
(b) | would be required to be such an authorised person if it were a UK |
| 15 |
resident entity which carried on its activities in the United Kingdom. |
| |
| |
(a) | in relation to an authorised person within sub-paragraph (2)(a), has |
| |
the meaning given by section 139(1) of FISMA 2000 (rules relating to |
| |
| 20 |
(b) | in relation to an authorised person within sub-paragraph (2)(b), |
| |
means any money held by the person outside the United Kingdom |
| |
where the holding of that money is subject to rules comparable with |
| |
rules made under section 139 of that Act, |
| |
| but does not include a deposit within the meaning of article 5(2) of the |
| 25 |
Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 |
| |
(S.I. 2001/544) ignoring the exclusions in articles 6 to 9AB. |
| |
39 (1) | Currency liabilities are excluded. |
| |
(2) | “Currency liabilities” means liabilities of an entity or a group of entities |
| |
representing notes issued by the entity or a member of the group as |
| 30 |
| |
| |
| |
Chargeable periods: entities which do not prepare financial statements |
| |
40 (1) | This paragraph applies where an entity does not prepare financial |
| 35 |
statements (consolidated or otherwise) for a period (“the relevant period”). |
| |
(2) | If the relevant period is 12 months or less, this Schedule (apart from this |
| |
paragraph) applies as if that period were a period of account of the entity. |
| |
(3) | If the relevant period is more than 12 months, this Schedule (apart from this |
| |
paragraph) applies as if each period to which sub-paragraph (4) applies |
| 40 |
were a period of account of the entity. |
| |
(4) | This sub-paragraph applies to a period if— |
| |
(a) | it is the first period of 12 months falling within the relevant period, or |
| |
|
| |
|
| |
|
(b) | it begins immediately after the end of the period mentioned in |
| |
paragraph (a) and ends at the end of the relevant period. |
| |
(5) | Sub-paragraph (6) applies if, at the end of a period of 36 months beginning |
| |
with a relevant date, an entity has not prepared financial statements for a |
| |
period which begins with that date. |
| 5 |
(6) | The entity is to be treated for the purposes of this paragraph as not having |
| |
prepared financial statements for that period or, if that period exceeds 24 |
| |
months, for the first 24 months of that period. |
| |
(7) | “Relevant date” means— |
| |
| 10 |
(b) | the first day after a period, ending on or after that date, for which the |
| |
entity has prepared financial statements, or |
| |
(c) | the first day after a period for which the company is treated under |
| |
sub-paragraph (6) as not having prepared financial statements. |
| |
| 15 |
41 (1) | This paragraph applies for the purposes of this Schedule. |
| |
(2) | References to consolidated financial statements for a period include |
| |
references to a consolidated balance sheet (or consolidated statement of |
| |
financial position) as at the last day of the period. |
| |
(3) | References to financial statements for a period include references to a |
| 20 |
balance sheet (or statement of financial position) as at the last day of the |
| |
| |
(4) | References to amounts recognised in consolidated financial statements or |
| |
financial statements include references to an amount comprised in an |
| |
| 25 |
(5) | Sub-paragraph (6) applies if an amount for the chargeable period, or as at the |
| |
last day of the chargeable period, is so recognised in a currency other than |
| |
| |
(6) | The amount is to be translated into its sterling equivalent by reference to the |
| |
spot rate of exchange for the last day of the chargeable period. |
| 30 |
(7) | If consolidated financial statements or financial statements for the |
| |
chargeable period are not prepared in a way which complies with the |
| |
relevant accounting framework under which the statements are prepared, |
| |
the statements are to be adjusted as necessary to ensure that they comply. |
| |
(8) | In sub-paragraph (7) “relevant accounting framework” means— |
| 35 |
(a) | international accounting standards, |
| |
| |
| |
(9) | In relation to the preparation of consolidated financial statements or |
| |
financial statements under UK GAAP, Financial Reporting Standard 23 and |
| 40 |
Financial Reporting Standard 26 are to be treated as if they were mandatory |
| |
| |
(10) | Accordingly, if any statements are prepared under UK GAAP without one |
| |
or both of those Standards being applied, the statements are to be treated as |
| |
|
| |
|
| |
|
not complying with UK GAAP and adjusted under sub-paragraph (7) |
| |
| |
| |
42 (1) | This paragraph applies if— |
| |
(a) | the relevant group is a foreign banking group or a relevant non- |
| 5 |
| |
(b) | a member of the relevant group has an interest (“the relevant |
| |
interest”) in a joint venture for the purposes of those provisions of the |
| |
applicable accounting standards which relate to joint ventures, |
| |
(c) | the amounts recognised in the relevant consolidated financial |
| 10 |
statements include amounts representing the liabilities (“the JV |
| |
liabilities”) of the joint venture so far as determined by the relevant |
| |
| |
(d) | the joint venture is a UK resident entity or, if the relevant group is a |
| |
relevant non-banking group, a UK resident bank, and |
| 15 |
(e) | none of the liabilities of a relevant UK sub-group, a relevant UK |
| |
banking sub-group or any entity for the purposes of (as the case may |
| |
be) paragraph 17(6)(a) or (12)(a), 19(6)(a) or (12)(a) or 27(2)(a) include |
| |
| |
(2) | For the purpose of determining the chargeable equity and liabilities of the |
| 20 |
relevant group the joint venture is to be treated as if it were (as the case may |
| |
be) a UK resident entity covered by paragraph 17(10) or a UK resident bank |
| |
covered by paragraph 19(10)— |
| |
(a) | the liabilities of which consist of the JV liabilities, and |
| |
(b) | the assets of which consist of the assets of the joint venture so far as |
| 25 |
determined by the relevant interest. |
| |
(3) | In this paragraph references to the amounts recognised in the relevant |
| |
consolidated financial statements are to— |
| |
(a) | the amounts recognised in the relevant group’s consolidated |
| |
financial statements for the chargeable period as prepared under the |
| 30 |
applicable accounting standards, or |
| |
(b) | if no such financial statements are prepared, the amounts which |
| |
would have been so recognised had consolidated financial |
| |
statements for the relevant group been prepared for the chargeable |
| |
period under international accounting standards. |
| 35 |
(4) | “The applicable accounting standards” means— |
| |
(a) | international accounting standards, or |
| |
(b) | US GAAP if the members of the relevant group are determined |
| |
| |
43 (1) | This paragraph applies for the purpose of determining the chargeable equity |
| 40 |
and liabilities of the relevant group or the relevant entity if, as at the end of |
| |
| |
(a) | the parent entity or the relevant entity is a joint venture for the |
| |
purposes of a JV standard, and |
| |
(b) | the liabilities of the parent entity or the relevant entity include |
| 45 |
liabilities (“the JV liabilities”) which are subject to a double charge. |
| |
(2) | The JV liabilities are to be left out for the purpose of determining the |
| |
chargeable equity and liabilities. |
| |
|
| |
|
| |
|
(3) | In sub-paragraph (1)(b) the reference to the liabilities of the parent entity |
| |
includes any liabilities which, in the absence of this paragraph, would form |
| |
part of the chargeable equity and liabilities of the relevant group. |
| |
(4) | The JV liabilities are subject to a double charge if conditions A and B are met. |
| |
(5) | Condition A is that an entity (“V”) which has an interest in the joint venture |
| 5 |
for the purposes of the JV standard— |
| |
(a) | is an entity in relation to which paragraph 4(1) or 5(1) applies as at |
| |
the end of the chargeable period (or in relation to which paragraph |
| |
4(1) or 5(1) would apply if V had a period of account ending at the |
| |
same time as the chargeable period), or |
| 10 |
(b) | falls within sub-paragraph (6). |
| |
(6) | V falls within this sub-paragraph if— |
| |
(a) | there is another entity (“A”) in relation to which paragraph 4(1) |
| |
applies as at the end of the chargeable period (or in relation to which |
| |
paragraph 4(1) would apply if A had a period of account ending at |
| 15 |
the same time as the chargeable period), and |
| |
(b) | V is (or would be) a member of the relevant group of which A is (or |
| |
would be) the parent entity. |
| |
| |
(a) | in the circumstances mentioned in sub-paragraph (5)(a) or sub- |
| 20 |
paragraph (5)(b) (when read with sub-paragraph (6)), the bank levy |
| |
is charged (or would be charged), and |
| |
(b) | in determining the amount of the bank levy, the JV liabilities are (or |
| |
would be) liabilities for the purposes of paragraph 15(2)(a), 17(6)(a) |
| |
or (12)(a), 19(6)(a) or (12)(a), 21(2)(a) or 27(2)(a) by virtue of V having |
| 25 |
an interest in the joint venture. |
| |
(8) | “JV standard” means those provisions of international accounting standards |
| |
or UK GAAP which relate to joint ventures. |
| |
| |
44 | For the purposes of this Schedule— |
| 30 |
(a) | the territory in which a company is resident is to be determined as |
| |
for corporation tax purposes, and |
| |
(b) | the territory in which a partnership is resident is the territory in |
| |
which the control and management of the partnership’s trade and |
| |
investment activities take place. |
| 35 |
Bank levy to be ignored for other tax purposes |
| |
45 | In calculating profits or losses for the purposes of income tax or corporation |
| |
| |
(a) | no deduction is allowed in respect of the bank levy, and |
| |
(b) | no account is to be taken of any amount which is paid by a member |
| 40 |
of the relevant group to another member of the group for the |
| |
purposes of meeting or reimbursing the cost of the bank levy |
| |
charged in relation to the group. |
| |
|
| |
|
| |
|
| |
46 (1) | This paragraph applies if— |
| |
(a) | arrangements are entered into by one or more entities, and |
| |
(b) | the main purpose, or one of the main purposes, of the entity, or any |
| |
of the entities, in entering into the arrangements or any part of them |
| 5 |
is to avoid or reduce a charge or assessment to the bank levy. |
| |
(2) | In this paragraph “the relevant arrangements”— |
| |
(a) | means the arrangements or the part of them referred to in sub- |
| |
| |
(b) | includes any part of those arrangements or of that part. |
| 10 |
(3) | Sub-paragraph (4) applies if an effect of the relevant arrangements is that the |
| |
bank levy is not charged or assessed as it would have been in the absence of |
| |
the relevant arrangements. |
| |
(4) | The bank levy is charged or assessed as it would have been ignoring that |
| |
| 15 |
(5) | The cases covered by sub-paragraph (3) include (in particular) cases in |
| |
which the bank levy is charged or assessed but an effect of the relevant |
| |
arrangements is that the amount of the bank levy charged or assessed— |
| |
| |
(b) | is otherwise less than it would have been in the absence of the |
| 20 |
| |
(6) | In sub-paragraphs (3) and (5) references to the relevant arrangements do not |
| |
include those arrangements to the extent to which any of the following sub- |
| |
paragraphs applies to them. |
| |
(7) | This sub-paragraph applies to the relevant arrangements so far as their effect |
| 25 |
is to increase, on an ongoing basis, the excluded equity and liabilities of the |
| |
relevant group or the relevant entity. |
| |
(8) | This sub-paragraph applies to the relevant arrangements so far as their effect |
| |
is to increase, on an ongoing basis, the long term equity and liabilities of the |
| |
relevant group or the relevant entity. |
| 30 |
(9) | This sub-paragraph applies to the relevant arrangements so far as— |
| |
(a) | their effect is to reduce, on an ongoing basis, the short term liabilities |
| |
of the relevant group or the relevant entity, and |
| |
(b) | there is no corresponding increase, on an ongoing basis or otherwise, |
| |
in the amount of the funding, or the size of the financial obligations, |
| 35 |
of the relevant group or the relevant entity which is not, or are not, |
| |
excluded equity and liabilities or long term equity and liabilities (it |
| |
being immaterial for this purpose whether or not any such funding |
| |
or obligation is recognised in the financial statements of the group or |
| |
| 40 |
(10) | This sub-paragraph applies to the relevant arrangements so far as— |
| |
(a) | their effect is to reduce, on an ongoing basis, the long term equity and |
| |
liabilities of the relevant group or the relevant entity, and |
| |
(b) | there is no corresponding increase, on an ongoing basis or otherwise, |
| |
in the amount of the funding, or the size of the financial obligations, |
| 45 |
of the relevant group or the relevant entity which is not, or are not, |
| |
|
| |
|
| |
|
excluded equity and liabilities (it being immaterial for this purpose |
| |
whether or not any such funding or obligation is recognised in the |
| |
financial statements of the group or entity). |
| |
(11) | This sub-paragraph applies to the relevant arrangements so far as they are |
| |
an agreement within paragraph 16(1)(c) and (d), 18(8)(c) and (d), 20(8)(c) |
| 5 |
and (d), 22(1)(c) and (d) or 25(1)(c) and (d). |
| |
(12) | This sub-paragraph applies to the relevant arrangements so far as their effect |
| |
is to increase, on an ongoing basis, the amount of the high quality liquid |
| |
assets of the relevant group or the relevant entity. |
| |
(13) | If the relevant group is a foreign banking group or a relevant non-banking |
| 10 |
group, in the sub-paragraphs above references to the relevant group are to |
| |
be read as references to the members of the group, collectively, which are |
| |
| |
(14) | In sub-paragraph (13) “relevant member”— |
| |
(a) | has the same meaning as in paragraph 18 or 20 (as the case may be), |
| 15 |
| |
(b) | includes a relevant foreign bank covered by paragraph 17(17) or |
| |
19(17) (as the case may be). |
| |
47 (1) | Section 1139 of CTA 2010 (definition of “tax advantage”) is amended as |
| |
| 20 |
| |
(a) | omit the “or” after paragraph (c), and |
| |
(b) | after paragraph (d) insert “, or |
| |
(e) | the avoidance or reduction of a charge or assessment |
| |
to the bank levy under Schedule 19 to FA 2011 (the |
| 25 |
| |
(3) | After subsection (3) insert— |
| |
“(3A) | The avoidance or reduction of a charge or assessment to the bank |
| |
levy as a result of arrangements to which paragraph 46 of Schedule |
| |
19 to FA 2011 (bank levy: anti-avoidance) applies is to be ignored for |
| 30 |
the purposes of subsection (2)(e) to the extent that it results from |
| |
arrangements, or part of arrangements, to which any of paragraph |
| |
46(7) to (12) of that Schedule applies.” |
| |
| |
Collection and management |
| 35 |
Responsibility for collection and management |
| |
48 (1) | The Commissioners for Her Majesty’s Revenue and Customs are |
| |
responsible for the collection and management of the bank levy. |
| |
(2) | In this Part of this Schedule “HMRC” means Her Majesty’s Revenue and |
| |
| 40 |
|
| |
|
| |
|
Payment of the bank levy through the corporation tax system |
| |
49 (1) | This paragraph applies where the bank levy is charged as provided for by |
| |
| |
(2) | The bank levy is to be treated as if it were an amount of corporation tax |
| |
chargeable on the relevant group’s responsible member (see paragraph 53) |
| 5 |
for the accounting period or periods determined in accordance with the |
| |
following sub-paragraphs. |
| |
(3) | Subject to what follows, the accounting period for which the bank levy is to |
| |
be treated as if it were an amount of corporation tax chargeable is to be— |
| |
(a) | the responsible member’s accounting period which ends at the same |
| 10 |
time as the chargeable period, or |
| |
(b) | if it does not have an accounting period which ends at that time, its |
| |
accounting period during which the chargeable period ends. |
| |
(4) | If a proportion (“X%”) of the chargeable period falls in any other accounting |
| |
period of the responsible member, X% of the bank levy is to be treated as if |
| 15 |
it were an amount of corporation tax chargeable for that other accounting |
| |
| |
50 (1) | This paragraph applies where the bank levy is charged as provided for by |
| |
| |
(2) | The bank levy is to be treated as if it were an amount of corporation tax |
| 20 |
chargeable on the relevant entity for the accounting period or periods |
| |
determined in accordance with the following sub-paragraphs. |
| |
(3) | Subject to what follows, the accounting period for which the bank levy is to |
| |
be treated as if it were an amount of corporation tax chargeable is to be— |
| |
(a) | the relevant entity’s accounting period which ends at the same time |
| 25 |
as the chargeable period, or |
| |
(b) | if it does not have an accounting period which ends at that time, its |
| |
accounting period during which the chargeable period ends. |
| |
(4) | If a proportion (“X%”) of the chargeable period falls in any other accounting |
| |
period of the relevant entity, X% of the bank levy is to be treated as if it were |
| 30 |
an amount of corporation tax chargeable for that other accounting period. |
| |
51 (1) | Paragraphs 49(2) and 50(2) are to be taken as applying all enactments |
| |
applying generally to corporation tax. |
| |
| |
(a) | any provisions of the Taxes Acts (within the meaning of TMA 1970), |
| 35 |
(b) | any necessary modifications, and |
| |
| |
(3) | The enactments mentioned in sub-paragraph (1) include— |
| |
(a) | those relating to returns of information and the supply of accounts, |
| |
| 40 |
(b) | those relating to the assessing, collecting and receiving of |
| |
| |
(c) | those conferring or regulating a right of appeal, and |
| |
(d) | those concerning administration, penalties, interest on unpaid tax |
| |
and priority of tax in cases of insolvency under the law in any part of |
| 45 |
| |
|
| |
|