Revenue eBrief No. 272/23

28 December 2023

Stamp Duty Tax and Duty Manual (TDM) - Section 126AB – Further Levy on Certain Financial Institutions

Tax and Duty Manual Section 126AB – Further Levy on Certain Financial Institutions is a new manual. 

Section 73 of Finance (No.2) Act 2023 inserts a new section 126AB in the Stamp Duties Consolidation Act (SDCA) 1999, which provides for the introduction of a revised bank levy for the year 2024. This replaces the levy that was provided for by 126AA SDCA 1999, which has not been extended beyond 31 December 2023.

The revised levy will only apply to certain financial institutions - namely Allied Irish Banks plc, EBS DAC, permanent tsb plc, and The Governor and Company of the Bank of Ireland.

The levy will be applied at a rate of 0.122% on an amount equal to the total value of deposits held by the liable financial institutions on 31 December 2022, to the extent that such deposits are “eligible deposits” within the meaning of the European Union (Deposit Guarantee Schemes) Regulations 2015.

Please note that section 126AB, as introduced by the Finance (No. 2) Act 2023, provides for a lower rate of 0.112% to be applied. However, on 28 November 2023, the Minister for Finance announced that he intended to adjust the rate of the levy from 0.112% to 0.122%. The Minister noted that a technical inconsistency had been identified, which meant that it was necessary to adjust the rate to ensure that the full €200 million would be collected in 2024. The relevant legislative change will be made at a future point.