Introduction Background Note
116.This Schedule introduces a new tax called the bank payroll tax (BPT). The tax is payable by taxable companies, broadly banking groups, banking entities and building societies, on “relevant remuneration” as defined, awarded to, or in respect of certain banking employees.
117.The rate of the BPT is 50 per cent. It will be payable by a taxable company. The employees themselves will not be liable to pay the new tax.
118.The tax will be payable on the excess above £25,000 of the aggregate of all relevant remuneration (whether in the form of cash, shares or other benefits) awarded in respect of any “relevant banking employee” (as defined) in the period commencing at 12.30 pm on 9 December 2009 and ending on 5 April 2010. Payment will be due on or before 31 August 2010.
119.The tax is not payable on the following, none of which are “relevant remuneration”:
	regular salary or wages or regular benefits;
	shares awarded or granted under certain specified share schemes; and
	anything payable or to be provided by virtue of a contractual obligation that arose before 12.30 pm on 9 December 2009.
120.The Schedule includes collection and management provisions for the tax and anti-avoidance legislation to prevent avoidance of the BPT through the use of loans, multiple employments with the same employer and intermediaries. The Schedule also includes a general anti-avoidance provision.