FREE: Taxpayers struggling to account for UK bank levy

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

FREE: Taxpayers struggling to account for UK bank levy

UK taxpayers are experiencing a number of headaches when it comes to complying with the new bank levy, says a taxpayer at a large multinational bank.

Speaking to International Tax Review, the taxpayer, who wished to remain anonymous, flagged up the problem banks were experiencing when accounting for the levy. The main issue is that the levy applies to the global consolidated balance sheets of British banking groups and building societies, while not all the necessary information is held in the UK. This has required a lot of coordination between the bank’s branches and subsidiaries.

Another problem the taxpayer identified is that they were facing double taxation with the German bank levy.

The German levy, like the UK's, is based on liabilities, but Germany's is payable into a fund and is only levied at an entity level, excluding German branches of foreign banks. The UK's levy, by contrast, includes all banks which operate in the UK including their branches and subsidiaries based in Germany.

"Double taxation will result from the overlap of domestic measures whose scope of application has not been concerted," says Roger Kaiser, senior tax and accounting adviser at the European Banking Federation.

The taxpayer was hopeful, however, that an agreement between the UK and Germany will be reached soon to prevent them being taxed twice on the same assets and liabilities.

more across site & shared bottom lb ros

More from across our site

Tom Goldstein, who is now a blogger, is being represented by US law firm Munger, Tolles & Olson
In looking at the impact of taxation, money won't always be all there is to it
Australia’s Tax Practitioners Board is set to kick off 2026 with a new secretary to head the administrative side of its regulatory activities.
Ireland’s Department of Finance reported increased income tax, VAT and corporation tax receipts from 2024; in other news, it’s understood that HSBC has agreed to pay the French treasury to settle a tax investigation
The Australian Taxation Office believes the Swedish furniture company has used TP to evade paying tax it owes
Supermarket chain Morrisons is facing a £17 million ($23 million) tax bill; in other news, Donald Trump has cut proposed tariffs
The controversial deal will allow US-parented groups to be carved out from key aspects of pillar two
Awards
ITR invites tax firms, in-house teams, and tax professionals to make submissions for the 2027 World Tax rankings and the 2026 ITR Tax Awards globally
Pillar two was ‘weakened’ when it altered from a multinational convention agreement to simply national domestic law, Federico Bertocchi also argued
Imposing the tax on virtual assets is a measure that appears to have no legal, economic or statistical basis, one expert told ITR
Gift this article