Statistical Notice 2024/12 | Bank of England

Bank of England (BoE) Levy Classification

The Bank of England (BoE) Levy is a new levy that was established on 1 March 2024 as a replacement to the Cash Ratio Deposit scheme. Both schemes enabled the Bank to undertake functions in pursuit of its monetary policy and financial stability objectives.

On 20th September 2024, the ONS classified the BoE Levy with effect from 1 March 2024 as other taxes on production. As such, institutions paying the BoE Levy are advised to report their levy payments on Form PL under taxes payable (PL16 / PL.01.01.01 R1600 C0010) on an accrual basis.

The BoE Levy year runs from 1st March, and eligible institutions will be advised of their BoE Levy charge for the year in July (after the Q1 reporting cycle). Ideally, institutions should start accruing the BoE Levy on their Form PL from Q1 reporting, however, we ask that institutions accrue the BoE Levy from Q2 reporting onwards given the marginal impact on Q1 reporting. That is, for PL reporting purposes the BoE Levy payment for a given levy year should be apportioned from Q2 reporting until Q1 reporting for the following calendar year.

Institutions paying the BoE Levy for the levy year 2024/25 are requested to resubmit their Form PL Q2 2024 submission to include the BoE Levy payment accrual for this levy year.

The ONS have also provided a clarification on the classification for the FMI Levy and PRA Levy. These have been classified as a fee for financial services paid by eligible financial corporations. As such, these should be captured under fees and commissions payable (PL6 / PL.01.01.01 R1060 C0010).

Additionally, the PL Guidelines will be updated to reflect the above guidance in due course.

If you have any questions or require further clarification, please reach out to DSDPLTeam@bankofengland.co.uk.

Footnote

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