Guidance

Restriction on brought forward reliefs in the UK banking sector - technical note

This technical note provides the detail as to how the proposed legislation will operate.

• From: HM Revenue & Customs
• Published: 3 December 2014
• Last updated: 25 March 2015
  Show all updates

  1. 25 March 2015

     This technical note has been updated to reflect changes to the legislation following technical consultation. The new chapter 8 covers an allowance for building societies and their groups, and chapter 9 now deals with the targeted anti-avoidance rule and provides details of the addition of a motive test.

  2. 3 December 2014

     First published.

Documents

Restriction on brought forward reliefs in the UK banking sector - technical note

PDF, 438 KB, 32 pages

This file may not be suitable for users of assistive technology.

Request an accessible format

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Details

On 3 December 2014 the Chancellor of the Exchequer announced that the government will introduce legislation in the Finance Bill 2015, which will restrict the proportion of banks’ annual taxable profit that can be offset by certain carried forward reliefs to 50%. The restriction will apply to carried forward of trading losses, non-trading loan relationship deficits, and management expenses. The restriction will take effect from 1 April 2015 and will only apply to relevant reliefs accruing prior to this date.