Bank levy consultation

HMRC is consulting on draft Bank Levy (Loss Absorbing Instruments) Regulations that will clarify the bank levy rules on deductions from a UK entity’s equity and liabilities where it holds assets representing loss-absorbing instruments issued by overseas subsidiaries to meet regulatory requirements. HMRC has also published a draft explanatory memorandum, draft tax information and impact note and draft guidance on the proposals. The consultation closes on 10 August 2020 and the regulations are expected to have effect in relation to chargeable periods ending on or after 1 January 2021.