UK and Ireland: Year-end changes to cash deadlines and bank levy - reminder

17.12.2019

Customers are informed that on

31 December 2019

the Clearstream Banking1 deadline for cash pre-advices and withdrawals of funds is moved from 18:00 CET to 16:00 CET on value date.

Any charges to Clearstream Banking arising from a GBP long balance held on cash accounts at Clearstream Banking’s UK cash correspondent banks at the end of day 31 December 2019 will be passed on to the Clearstream Banking customer, if such long balance is due to customer instructions not having respected the instruction deadlines.

Customers receiving non-pre-advised funds or leaving long balances in GBP on their account with Clearstream Banking on 31 December 2019 may be charged a fee of up to 0.15% or equivalent to the bank levy rate applied.

There is no change to the Clearstream Banking deadline for against payment transactions in GBP in the UK and Irish markets.

Impact on customers

On 31 December 2019

  • The Clearstream Banking deadline for cash pre-advices and payment instructions in GBP will be 16:00 on value date.
  • Non-pre-advised funds may be subject to a charge of up to 0.15% or equivalent to the bank levy rate applied.
  • GBP long cash balances held on customer accounts at close of business on 31 December 2019 may be subject to a pro-rata charge up to 0.15% or equivalent to the bank levy rate applied.

Customers are encouraged to closely manage their GBP balances on 31 December 2019.

Background on UK bank levy

The UK bank levy is an annual charge that was introduced in 2010, effective 1 January 2011, on certain equity and liabilities (termed “chargeable equity and liabilities”) to apply to UK banks and building society groups, foreign banks and banking groups operating in the UK and UK banks in non-banking groups.

The levy is an annual balance sheet charge based on the equity and liabilities reported on the relevant balance sheets at the end of a period of account of the entity or, in the case of a group, of the parent entity.

Further information

More specific information is available at http://www.hmrc.gov.uk/.

For further information, customers may contact Clearstream Banking Customer Service or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.