HMRC published draft legislation, an explanatory note and an updated technical note relating to the collection and management of the Bank Levy.

The government previously issued a consultation document on the Bank Levy in July with the period for consultation running until 5 October 2010. The objective of the consultation was to address a number of operational issues around design and implementation and to develop a targeted and workable design that best meets the Bank Levy objectives; including minimising where possible the compliance costs.

Having considered the responses from all interested parties the government announced in October its proposals on the final design of the Bank Levy.

Draft clauses along with explanatory notes relating to most of the provisions of the Bank Levy were published for consultation on 21 October 2010. Further draft clauses relating to the collection and management of the Bank Levy by HMRC together with a technical note were issued on 24 November.

The technical note provides an overview on how the Bank Levy will apply to all UK bank and building society groups, foreign banks and banking groups operating in the UK and UK banks in non banking groups, from 1 January 2011 onwards.

Full HMRC guidance will be published along with the final draft of legislation later this year.