The new normal for the bank levy

A significant package of changes to the bank levy rules comes into force on 1 January 2021, which will affect almost every bank subject to the levy. The principal changes remove liabilities of non-UK subsidiaries from the bank levy base, with the knock-on consequence that intra-group liabilities owed to those subsidiaries fall into the bank levy charge for the first time. The changes also allow UK banks to elect to remove their non-UK permanent establishments from the bank levy base, update the relief for netting arrangements, and cater for some developments in regulatory capital rules in the last ten years.