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Bank levy: loss absorbing instruments

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The Bank Levy (Loss Absorbing Instruments) Regulations, SI 2020/1188, set out various conditions for the treatment for the bank levy of loss absorbing instruments (such as shares and certain convertible debt) issued by overseas subsidiaries of UK resident entities. If these instruments meet the conditions set out in the regulations, they can be deducted from equity and liabilities otherwise chargeable to the bank levy. The regulations will ensure the bank levy rules operate as intended from 1 January 2021 where UK entities hold loss absorbing instruments issued by overseas subsidiaries.

Issue: 1508
Categories: News