BKM502100 - Code population: adopting the Code

The annual report HMRC publishes on the operation of the Code includes a list of each bank within the Code population. This is made up of the banks which have adopted the Code and the banks which have not adopted the Code but satisfy the definition in FA14/S285.

Banks which have adopted the Code are described in the legislation (FA14/S286) as “participating groups and entities”. These are banks which have notified the Commissioners, in writing, that they have unconditionally committed to complying with the Code on or after 31 May 2013.

The adoption covers all entities within the charge to UK corporation tax. It therefore does not include overseas entities without a branch in the UK. However, UK entities are required to ensure their governance prevents overseas subsidiaries promoting arrangements to avoid UK tax. There is more detail about this in BKM503400.

Small banks are only required to adopt Part 1 of the Code (FA2014/S285(11)). A copy of the statement published by HMRC in accordance with FA2014/S285(11) can be found here. This means that while small banks are expected to adhere to all strands of the Code, for Code purposes they are not required to have a fully documented tax strategy.

A small bank is a group or entity to which HMRC has not assigned a Customer Compliance Manager (CCM). This definition is modified for banks in non-banking groups. In these cases, the bank is a small bank if the banking entity or entities would not be large enough on their own to be assigned a CCM.