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

However, women in tax face greater career obstacles than their male counterparts, an exclusive ITR survey of more than 100 women tax leaders revealed
Under Jeff Soar’s leadership, WTS UK aims to scale to 100 partners within five years and challenge the big four
As the firm embarks on a major shakeup of its EMEA partnerships, some staff will be watching nervously
The buyout of Hucke and Associates continues Ryan’s streak of firm acquisitions; in other news, a UK appeal against VAT on private school fees was dismissed
Tax teams are responding to usual client demand in the region, albeit with increased working from home flexibility, local sources indicate
A 120-plus-day delay to refunds would cost taxpayers almost $3bn in additional interest, the Cato Institute warned; plus indirect tax updates from February
The Office for Budget Responsibility’s pessimistic pillar two forecast accompanied the UK chancellor’s muted Spring Statement, dubbed ‘as dull as possible’ by one adviser
Digital tax reform is dissolving the old ‘temporal buffer’, forcing systems, institutions, and professionals to adapt as real-time reporting reshapes governance, capability, and compliance
Our first instalment features analysis of Deloitte’s landmark EMEA merger, Donald Trump’s Supreme Court tariff showdown and Venezuela’s tax evolution
While some believe it could have a positive effect on the wider advisory landscape, others argue that HMRC’s ‘red tape’ exercise won’t deter bad actors
Gift this article