Commonwealth Capital Charge How Much Per Load?

The Commonwealth Capital Charge (CCC) is a levy imposed on all large financial institutions in the United Kingdom. The charge is designed to raise revenue to fund the Financial Services Compensation Scheme (FSCS), which protects depositors and other customers of failed financial institutions.

The CCC is calculated on a risk-weighted basis, meaning that institutions with higher levels of risk are charged more. The charge is also levied on a per-load basis, meaning that institutions are charged based on the number of liabilities they have.

The current rate of the CCC is 0.08% of liabilities. This means that an institution with £100 billion of liabilities would pay an annual CCC of £80 million.

The CCC is a significant cost for many financial institutions. In 2021, the CCC raised a total of £1.6 billion for the FSCS.

Who pays the CCC?

The CCC is paid by all large financial institutions in the UK. This includes banks, building societies, credit unions, and investment firms.

How is the CCC calculated?

The CCC is calculated on a risk-weighted basis. This means that institutions with higher levels of risk are charged more. The risk weighting of an institution is determined by the Financial Conduct Authority (FCA).

The CCC is also levied on a per-load basis. This means that institutions are charged based on the number of liabilities they have. A liability is defined as any obligation to pay money or provide goods or services in the future.

What is the current rate of the CCC?

The current rate of the CCC is 0.08% of liabilities. This means that an institution with £100 billion of liabilities would pay an annual CCC of £80 million.

How much does the CCC raise?

In 2021, the CCC raised a total of £1.6 billion for the FSCS.

What is the purpose of the CCC?

The CCC is designed to raise revenue to fund the FSCS. The FSCS protects depositors and other customers of failed financial institutions.

Is the CCC a fair tax?

The CCC is a controversial tax. Some argue that it is a fair tax because it is levied on institutions that pose the greatest risk to the financial system. Others argue that it is an unfair tax because it is a burden on all financial institutions, regardless of their risk profile.

Alternatives to the CCC

There are a number of alternatives to the CCC that have been proposed. These include:

• A levy on all financial institutions, regardless of their size or risk profile.
• A tax on the profits of financial institutions.
• A tax on the assets of financial institutions.

Conclusion

The CCC is a significant cost for many financial institutions. The charge is designed to raise revenue to fund the FSCS, which protects depositors and other customers of failed financial institutions. The CCC is a controversial tax, but it is necessary to ensure that the FSCS has the resources it needs to protect consumers.

FAQs

Q: Who pays the CCC?

A: The CCC is paid by all large financial institutions in the UK.

Q: How is the CCC calculated?

A: The CCC is calculated on a risk-weighted basis and a per-load basis.

Q: What is the current rate of the CCC?

A: The current rate of the CCC is 0.08% of liabilities.

Q: How much does the CCC raise?

A: In 2021, the CCC raised a total of £1.6 billion for the FSCS.

Q: What is the purpose of the CCC?

A: The CCC is designed to raise revenue to fund the FSCS, which protects depositors and other customers of failed financial institutions.

Q: Is the CCC a fair tax?

A: The CCC is a controversial tax, but it is necessary to ensure that the FSCS has the resources it needs to protect consumers.

Q: What are some alternatives to the CCC?

A: Alternatives to the CCC include a levy on all financial institutions, a tax on the profits of financial institutions, and a tax on the assets of financial institutions.