Part 3: Banking Section 16 and Schedule 2: Bank levy rates for 2016 to 2021 Background note
The bank levy is an annual balance sheet charge based upon the chargeable equities and liabilities of all UK banks and building society groups, foreign banks and banking groups operating in the UK and UK banks in non-banking groups from 1 January 2011 onwards.
	The bank levy is treated as if it is corporation tax, and the relevant entity is required to both make a return of the bank levy (as part of its company tax return) and to pay the bank levy. In the case of a banking group, it is the "the responsible member" (see paragraph 54, Schedule 19 to FA 2011) who has these responsibilities.
	Entities that pay the bank levy are required to do so under the provisions of The Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175).
	Banks are now recovering from the financial crisis and this reduction in the bank levy is being introduced alongside a new banking companies surcharge (see section 17 and Schedule 3) to amend the way that banks contribute to public finances based on their current year profitability levels.