On Apr. 24, UK BoE issued two statistical notices on its new levy rules.
UK BoE issued two Statistical Notices updating the definitions and guidance contained within the banking statistics yellow folder, on the introduction of the new UK BoE Levy.
Follows UK Treasury Feb. 2024 issued levy rules replacing CRD scheme, see #202753.
Background
On Mar. 1, 2024, the Bank of England Levy replaced the Cash Ratio Deposit scheme as a means of funding costs of UK BoE’s monetary policy and financial stability operations.
To reflect the change, various amendments have been made to documents published on the Statistical Reporting website, affecting all the eligible institutions (Levy Payers).
A summary of all the Statistical Notice items that are yet to come into effect are also available to view on Statistical Notices page, for those responsible for UK BoE returns.
As outlined in Framework Document, UK BoE Bank will use a formula to calculate the Levy amount payable by each eligible institution, who can find Total Eligible Liabilities (TEL) for the formula calculation within the Database section of the Bank's website.
Statistical Notice 2024/07
Various changes have been made to documents covering General notes and definitions, Classification of accounts guide, Form EL cross form validations, Form BT definitions.
These relate to the introduction of the Levy, removing references to the previous Cash Ratio Deposits (CRD) scheme and introducing updated reporting forms and documents.
Statistical Notice 2024/08
As part of UK BoE's operational steps in implementing the Levy, it requires Levy Payers to provide relevant contact details in relation to the Recognized Contact for persons authorized to give instructions, including payment instructions, relating to the Levy.
The provision of Recognized Contact details will be deemed to constitute the Levy Payer’s acceptance of Levy Terms and Conditions (T&Cs) associated with new scheme.
Also, as set out in the Bank of England Levy Framework Document, invoices for the Levy will be emailed to Levy Payers in or around July each year, which shall include the Levy amount payable by that Levy payer for the Levy Year ahead, after the calculation.
A relevant Invoice Contact is needed for persons to whom a Levy invoice must be sent.
Effectiveness
The UK BoE Levy Contact Details form must be submitted by 5.30pm on May 10, 2024.
