Business tax – policy paper

Bank Corporation Tax surcharge

This tax information and impact note applies to banking companies and building societies within the charge to UK Corporation Tax (CT).


This measure imposes a surcharge of 8% on the profits of banking companies. The profits will be calculated on the same basis as for CT, but with some reliefs added back.

The surcharge will be levied on profits of banking companies in accounting periods beginning on or after 1 January 2016.

Where a company’s accounting period straddles 1 January 2016, the period will be split and the surcharge will apply to the profits of the notional period commencing on 1 January 2016.