Bank Levy Citation, commencement and effect 1 1 This Order may be cited as the Finance Act 2011 (Bank Levy: Amendment of Netting Agreements Provisions) Order 2011 and comes into force on the date on which it is made. 2 This Order has effect in relation to chargeable periods ending on or after 1 January 2011. Amendment of Schedule 19 2 Schedule 19 to the Finance Act 2011 (the bank levy) is amended as follows. Amendment of paragraph 16 3 1 Paragraph 16 (chargeable equity and liabilities of a UK banking group or a building society group) is amended as follows. 2 In sub-paragraph (1)— a in paragraph (a) omit “and N has assets which correspond to those liabilities”; and b for paragraph (b) substitute— b M, or another member of the relevant group, recognises, as assets, amounts due from N or another entity which is not a member of the group (“N’s liabilities”), . 3 In sub-paragraph (2)—— a for paragraph (b) substitute— b references to amounts due from N or another entity which is not a member of the relevant group include securities provided by M, or another member of the relevant group, to N or another entity which is not a member of the relevant group as collateral, but only where M or another member of the relevant group recognises those securities in its balance sheet or statement of financial position, and ; b omit paragraph (c) (and the “and” after it); c in paragraph (d)(i) omit “assets which correspond to”; and d after paragraph (d) insert— Section 556 of CTA 2009 (meaning of securities and similar securities) applies for the purposes of this sub-paragraph as it applies for the purposes of Chapter 10 of Part 6 of that Act. 4 Omit sub-paragraph (3). Amendment of paragraph 18 4 1 Paragraph 18 (chargeable equity and liabilities of a foreign banking group) is amended as follows. 2 In sub-paragraph (8)— a in paragraph (a) omit “, and N has assets which correspond to those liabilities”; and b for paragraph (b) substitute— b M, or another entity within sub-paragraph (9), recognises, as assets, amounts due from N or another entity not within that sub-paragraph (“N’s liabilities”), . 3 In sub-paragraph (10)— a in paragraph (b) for “N’s assets corresponding to those liabilities are” substitute “N recognises assets in respect of those liabilities as”; b for paragraph (c) substitute— c references to amounts due from N or another entity not within sub-paragraph (9) include securities provided by M, or another entity within that sub-paragraph, to N or another entity not within sub-paragraph (9) as collateral, but only where M or that other entity within that sub-paragraph recognises those securities in its balance sheet or statement of financial position, and ; c omit paragraph (d) (and the “and” after it); d in paragraph (e)(i) omit “assets which correspond to”; and e after paragraph (e) insert— Section 556 of CTA 2009 (meaning of securities and similar securities) applies for the purposes of this sub-paragraph as it applies for the purposes of Chapter 10 of Part 6 of that Act. 4 Omit sub-paragraph (11). Amendment of paragraph 20 5 1 Paragraph 20 (chargeable equity and liabilities of a relevant non-banking group) is amended as follows. 2 In sub-paragraph (8)— a in paragraph (a) omit “, and N has assets which correspond to those liabilities”; and b for paragraph (b) substitute— b M, or another entity within sub-paragraph (9), recognises, as assets, amounts due from N or another entity not within that sub-paragraph (“N’s liabilities”), . 3 In sub-paragraph (10)— a in paragraph (b) for “N’s assets corresponding to those liabilities are” substitute “N recognises assets in respect of those liabilities as”; b for paragraph (c) substitute— c references to amounts due from N or another entity not within sub-paragraph (9) include securities provided by M or another entity within that sub-paragraph to N or another entity not within sub-paragraph (9) as collateral, but only where M or that other entity within that sub-paragraph recognises those securities in its balance sheet or statement of financial position, and ; c omit paragraph (d) (and the “and” after it); d in paragraph (e)(i) omit “assets which correspond to”; and e after paragraph (e) insert— Section 556 of CTA 2009 (meaning of securities and similar securities) applies for the purposes of this sub-paragraph as it applies for the purposes of Chapter 10 of Part 6 of that Act. 4 Omit sub-paragraph (11). Amendment of paragraph 22 6 1 Paragraph 22 (chargeable equity and liabilities of UK resident banks and building societies which are not members of groups) is amended as follows. 2 In sub-paragraph (1)— a paragraph (a) omit “(“N”) and N has assets which correspond to those liabilities”; and b for paragraph (b) substitute— b the relevant entity recognises, as assets, amounts due from that other entity (“N”) to the relevant entity (“N’s liabilities”), . 3 In paragraph 22(2)— a for paragraph (b) substitute— b references to amounts due from N include securities provided by the relevant entity to N as collateral, but only where the relevant entity recognises those securities in its balance sheet or statement of financial position, and ; b omit paragraph (c) (and the “and” after it); and c after paragraph (d) insert— Section 556 of CTA 2009 (meaning of securities and similar securities) applies for the purposes of this sub-paragraph as it applies for the purposes of Chapter 10 of Part 6 of that Act. 4 Omit sub-paragraph (3). Amendment of paragraph 25 7 1 Paragraph 25 (definition of “UK allocated equity and liabilities”) is amended as follows. 2 In sub-paragraph (1)— a in paragraph (a) omit— i “(“N”)”; and ii “, and N has assets which correspond to those liabilities”; and b for paragraph (b) substitute— b the bank recognises, as assets, amounts due from that other entity (“N”) to the bank (“N’s liabilities”), . 3 In sub-paragraph (3)— a for paragraph (b) substitute— b references to amounts due from N include securities provided by the relevant foreign bank to N as collateral, but only where the bank recognises those securities in its balance sheet or statement of financial position, and ; b omit paragraph (c) (and the “and” after it); and c after paragraph (d) insert— Section 556 of CTA 2009 (meaning of securities and similar securities) applies for the purposes of this sub-paragraph as it applies for the purposes of Chapter 10 of Part 6 of that Act. 4 Omit sub-paragraph (4). Angela Watkinson Jeremy Wright Two of the Lords Commissioners of Her Majesty’s Treasury 14th December 2011