CT600 Box 320: Bank Levy Amount Deducted

Box 320 on the CT600 relates to the bank levy - a special tax on UK banking groups. This is a niche box that applies only to the banking sector.

What Goes in Box 320?

Box 320 captures the bank levy amount deducted from profits. The bank levy is an annual tax on UK banks based on their balance sheet liabilities.

For almost all small companies, Box 320 will be zero or not applicable.

Understanding the Bank Levy

What Is the Bank Levy?

The bank levy is:

  • A tax on UK banks and building societies
  • Based on balance sheet equity and liabilities
  • Introduced in 2011
  • Only applies to banking groups

Who Pays the Bank Levy?

TypeBank Levy?
Major UK banksYes
Building societiesYes
UK subsidiaries of foreign banksYes
Small businessesNo
Trading companiesNo
Property companiesNo

Why Box 320 Exists

CT600 Design

The CT600 form covers all company types:

  • Major corporations
  • Banks and financial institutions
  • Small trading companies
Box 320 exists for banking sector compliance.

Deduction Mechanism

Banks that pay the levy can:

  • Deduct the levy as an expense
  • Box 320 records this deduction
  • Affects taxable profits calculation

For Small Companies

Does Box 320 Apply to You?

Almost certainly not. Unless your company is:

  • A licensed bank
  • A building society
  • Part of a banking group
Box 320 will be zero or left blank.

No Action Needed

For typical small companies:

  • Skip Box 320 entirely
  • It doesn't affect your CT600
  • Focus on relevant boxes

Bank Levy Rates

For reference (banking sector only):

Liability TypeRate
Short-term liabilitiesHigher rate
Long-term liabilitiesLower rate
Tier 1 capitalExempt
These rates have changed over time and are set by HMRC.

BoxDescription
300Profits chargeable to CT
310Tax on profits
315Corporation Tax chargeable
320Bank levy deducted (this box)
325Tax payable before reliefs

Common Questions

My company isn't a bank - can I ignore Box 320?

Yes. Box 320 is specifically for banks paying the bank levy. If you're not a bank, leave it blank or at zero.

What if I run a finance company?

Finance companies (leasing, lending) aren't necessarily "banks" for levy purposes. Only licensed deposit-taking institutions typically pay the levy.

Could Box 320 ever apply to small companies?

Extremely unlikely. The bank levy has minimum thresholds that exclude small businesses entirely.

When Using TinyTax

TinyTax is designed for small trading companies:

  • Box 320 doesn't apply to TinyTax users
  • The software handles relevant boxes
  • Banking-specific boxes aren't shown
If you're a bank, you'll need specialist software and advice.

Need Help?

TinyTax handles CT600s for small trading companies. Banking-specific requirements need specialist providers.

Start Your CT600 Filing →