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FEES 7D.2 The TPR DA levy

Obligation to pay TPR DA levy

FEES 7D.2.1R

1A firm must pay the TPR DA levy applicable to it:

  1. (1)

    in full and without deduction by 1 August (or, if later, within 30 days of the date of the invoice) in the financial year to which the sum relates; and

  2. (2)

    in accordance with the rules in this chapter.

FEES 7D.2.1AG

2Schedule 6A to the Act sets out a procedure to enable the FCA to cancel or vary the Part 4A permission of a person who it appears to the FCA is not carrying on a regulated activity. Paragraph 5 of that schedule sets out a procedure for annulment of cancellation or variation of Part 4A permission in specified circumstances. Where the FCA grants an application for annulment, paragraph 6 of Schedule 6A sets out its effect. In particular, the cancellation or variation of Part 4A permission is treated as if it had never taken place. As a result of the effect of annulment under Schedule 6A, the TPR DA levy in relation to the period during which the person’s Part 4A permission was cancelled or varied applies to the person.

FEES 7D.2.1BR

2Where the FCA grants a person’s application for annulment of a cancellation or variation of Part 4A permission under Schedule 6A to the Act and the person falls within FEES 7D.2.1R and the annulment takes effect after 1 August or after the invoice referred to in FEES 7D.2.1R(1) has been issued, then the date for payment referred to in FEES 7D.2.1R(1) does not apply, but the person must pay the TPR DA levy applicable to it in full and without deduction, on the date on which the annulment takes effect.

Calculation of TPR DA levy

FEES 7D.2.2R

1The TPR DA levy is calculated as follows:

  1. (1)

    identify each of the activity groups set out in Part 1 of FEES 7D Annex 1R that apply to the business of the firm for the relevant period (for this purpose, the activity groups under FEES 7D Annex 1R are defined in that Annex or in accordance with Part 1 of FEES 4 Annex 1AR);

  2. (2)

    calculate, for each of those activity groups identified in (1), the amount payable in the way set out in FEES 7D.2.3R; and

  3. (3)

    add each of the amounts calculated under (2).

FEES 7D.2.3R

1The amount payable by a firm with respect to a particular activity group is calculated as follows:

  1. (1)

    calculate the size of the firm’s tariff base for that activity group using:

    1. (a)

      the tariff base calculations in Part 2 of FEES 7D Annex 1R (including only business undertaken from a branch in the UK); and

    2. (b)

      the valuation date requirements in Part 3 of FEES 7D Annex 1R;

  2. (2)

    the amount payable in (1) is the amount payable by the firm with respect to that activity group.

FEES 7D.2.4R

1For the purposes of FEES 7D.2.3R:

  1. (1)

    a firm may apply the relevant tariff bases and rates to its non-UK business, as well as to its UK business, if:

    1. (a)

      it has reasonable grounds for believing that the costs of identifying its UK business separately from its non-UK business in the way described in Part 2 of FEES 7D Annex 1R are disproportionate to the difference in fees payable; and

    2. (b)

      it notifies the FCA in writing at the same time as it provides the information concerned under FEES 7D.2.3R(1), or, if earlier, at the time it pays the TPR DA levy applicable to it.

  2. (2)

    for a firm which has not complied with FEES 4A.2.6R for this period, the TPR DA levy is calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10.

TPR DA levy commencement

FEES 7D.2.5 R

1The TPR DA levy under FEES 7D relates to the whole of any fee year and is due for payment from the commencement of the fee year. Any payment made under FEES 7D.2.1R is not refundable.