Corporate report

The Code of Practice on Taxation for Banks - Annual Report 2019

Published 23 December 2019

1. Introduction

The Code of Practice on Taxation for Banks (‘the Code’) helps to deliver HM Revenue and Customs’ (HMRC’s) objective of promoting compliance. It was introduced in 2009 to change the attitudes and behaviours of banks towards avoidance because of their unique position as potential users, promoters and funders of tax avoidance.

The Code describes the approach expected of banks with regard to governance, tax planning and engagement with HMRC. Banks operating in the UK that sign up to the Code commit to adopt good practices in relation to their own tax affairs, and not to promote tax avoidance by others. The Code sets out that banks should:

• adopt adequate governance to control the types of transactions they enter into
• not undertake tax planning that aims to achieve a tax result that is contrary to the intentions of Parliament
• comply fully with all their tax obligations
• maintain a transparent relationship with HMRC

To strengthen the Code and provide greater transparency, legislation was introduced in Finance Act 2014, which requires HMRC to publish an annual report on how the Code is operating. The annual report lists all banks that have, and all banks that have not, adopted the Code. Where HMRC has concerns over whether a bank has met its obligations under the Code, HMRC will take action to address these concerns in line with the published Governance Protocol (‘the Protocol’). HMRC may name in the annual report banks that are found not to have complied with their Code commitments. A bank can only be named once all the steps set out in the Protocol have been completed.

A fuller history of the Code was set out in the introduction to the first annual report, which covered the period 5 December 2013 to 31 March 2015.

2. Operation of the Code in the year ended March 2019

Overview

This is the annual report on the operation of the Code, covering the period 1 April 2018 to 31 March 2019.

The names of the 320 banks that had adopted the Code as at 31 March 2019 are listed at Annex A. The list includes:

• 316 banks^{[footnote 1]} that had adopted the Code at 31 March 2018
• 12 banks which adopted in the year ended 31 March 2019

Eight groups or entities who were listed as adopters at 31 March 2018 are not in the Code population^{[footnote 2]} at 31 March 2019, either because they ceased trading or because they became part of another banking group. Their names remain on the list but have been struck through and will not be included in later lists.

The 5 banks within the Code population that had not adopted the Code as at 31 March 2019 are listed at Annex B. Two of these banks have adopted the Code since 31 March 2019. This list is drawn from banks which HMRC’s records show to be within the charge to the bank levy (whether or not they have any liability for the period), and from the list of banks and building societies published by the Prudential Regulatory Authority.

The Code continues to support improved behaviour across the banking sector. In summary:

• none of the banks which had adopted the Code by 31 March 2019 have been determined to be in breach of the Code during the period covered by this report
• banks that had adopted the Code did not make any disclosures under the Disclosure of Tax Avoidance Scheme regime in the period of the report
• all transactions reviewed during the period covered by this report, either in response to a Code approach^{[footnote 3]} or as part of risk assessment, were considered to be Code compliant
• no initial concerns were escalated to Director level or beyond during the period covered by this report.^{[footnote 4]}

IFF Research carries out an annual survey of large businesses on behalf of HMRC. In the 2018 survey, 39 banks which have adopted the Code took part in the quantitative survey and 8 of these took part in qualitative follow-up interviews. For the first time the interviews with banks included questions about the Code. IFF Research reported that the banks’ responses support the view that the Code (along with other changes to legislation, such as the requirement to publish tax strategies) has helped increase scrutiny of tax planning at a senior level in banks and that it has enhanced governance.

HMRC’s compliance work with banks

The commitments banks have given under the Code require them to bring promptly to HMRC’s attention all material facts relevant to their own tax affairs and in relation to the tax consequences of products and services they promote to their customers. They require the banks to maintain good internal controls over their tax affairs and to have clear lines of accountability within the bank for the implementation of its tax strategy. In addition to ensuring that specific transactions are not designed to achieve tax results that are contrary to the intentions of Parliament, the Code also requires banks to have strong governance around tax and for HMRC and the banks to work together to encourage mutually open and transparent relationships.

HMRC’s Large Business directorate (LB) manages the tax compliance of the 72 largest banks as well as a number of smaller banks that are part of a large non-banking group. HMRC’s Wealthy & Mid-Sized Business Compliance directorate (WMBC) manages the tax compliance of smaller banks.

LB carries out a Business Risk Review (BRR) annually for all non-low-risk large businesses. Where the business is low risk the Customer Compliance Manager (CCM) will usually carry out a formal BRR every 3 years, and will continue to engage with the bank in real-time as issues arise. The BRR enables HMRC’s CCMs to establish a good understanding of the tax risk profile in a particular business.

Since 2016 to 2017 banks have had a banking-specific BRR template, which ensures Code compliance is a central part of the BRR process. During the reporting period, a number of banks were a part of the pilot programme for LB’s new enhanced BRR process. The new process, BRR+, is currently being rolled out for all LB customers, and it will continue to ensure that Code compliance is central to the process. More details can be found in section 3.

As part of the BRR process, the CCM reviews information from a range of sources, including information HMRC already holds in respect of a business and information in the public domain. For banks this process will include asking a bank to explain why it believes a transaction identified as part of the risk assessment process was Code-compliant. Another way of gathering relevant information is through a review of the bank’s Code governance process by HMRC governance and audit specialists. CCMs use this information to help determine if the bank is complying with its Code commitments. CCMs and banks are expected to work together to address any gaps in knowledge before the next BRR.

The 4 Code categories on the BRR template are:

• the bank is compliant with its Code commitments
• the bank’s compliance with the Code is under review
• there are initial concerns over the bank’s compliance with its Code commitments^{[footnote 5]}
• there is an interim view that the bank has breached the Code^{[footnote 6]}

Forty-eight of the 72 large banking groups dealt with in LB had BRRs during the 2018 to 2019 reporting period. Thirty-eight of those identified the banks as compliant with their Code commitments, but in ten cases HMRC had yet either to carry out or complete its review of compliance with the Code at the end of the reporting period. These cases are therefore categorised as ‘under review’. If HMRC discovers any issues that give rise to initial concerns, it will address them in accordance with the Governance Protocol. Otherwise the banks will be classified as ‘compliant’ upon completion of the review.

The tax compliance of smaller banks is managed by a specialist team within WMBC. These banks do not have a dedicated CCM.

• During formal enquiries HMRC emphasises the Code obligation to ‘maintain a transparent relationship’ with HMRC in order to resolve matters quickly and efficiently.

• Outside the formal enquiry process HMRC raises Code compliance when meeting the representatives of smaller banks, in order to ensure they are aware of and meet their obligations under the Code. During the year HMRC has engaged with the smaller banks by conducting a webcast and building relationships with trade associations.

• All of the banks that the team have interacted with during the year have had an open and transparent relationship with HMRC. Where necessary, the team has reminded customers of their obligations under the Code to encourage collaborative working to achieve early resolution. No small bank has raised a Code issue with HMRC.

Whenever risk assessment activity, including reviews of data leaks such as the “Panama Papers”, reveals the involvement of a bank that has adopted the Code, HMRC will consider whether the available evidence gives rise to concerns about the bank’s compliance with its Code commitments. Where it does, as part of its work to tackle any avoidance or evasion, HMRC will investigate the bank’s compliance with all aspects of the Code. Any suspected breaches will be dealt with robustly, in accordance with the Governance Protocol.

Throughout the reporting period, a number of events were held to enhance HMRC staff’s understanding of how to review a bank’s compliance with the Code, both during their ongoing relationship with the bank and as part of the BRR process. These included formal training events and an in-depth workshop where staff considered the application of the Code to real-world scenarios.

HMRC’s response to Code approaches

Where a bank is unsure whether or not the tax result of a proposed transaction is contrary to the intentions of Parliament, it may discuss those plans in advance with HMRC (as set out in paragraph of 4.2 of the Code). In the period covered by this report, HMRC responded to five pre-transaction Code approaches. After careful consideration all five were agreed to be Code-compliant.

In the previous annual report HMRC committed to respond to Code approaches within 28 days. Where the complexity of the issues raised means that more time may be needed, HMRC will indicate to the bank at the outset that a decision is likely to take longer. If HMRC needs to ask for more information, the time taken by the bank to provide that information is excluded from the response time. This commitment is set out in the revised Code guidance, alongside an acknowledgement that where there is a commercial imperative to agree the Code position more quickly than this, HMRC will endeavour to meet this requirement.

During the 2018 to 2019 reporting period, the four Code approaches that were received before the new 28-day target was published in the previous annual report were responded to more than 28 days after receipt. The Code approach received after the report was published was dealt with within 28 days. HMRC identified issues with its process that are likely to cause delays, and has taken steps to resolve them. The training events referred to above covered the need for timeliness in responding to Code approaches. HMRC produced updated guidance for case teams shortly after the end of the reporting period in 2019, which also covered the process for responding to Code approaches expeditiously.

3. Forward Look

Role and operation of the Code

HMRC will continue to carry out frequent training to enhance our staff’s understanding of how to review a bank’s compliance with the Code and will ensure all new staff joining both LB and WMBC banking teams are trained on the Code.

HMRC produced updated guidance for case teams setting out their responsibilities in relation to the operation of the Code shortly after the end of the reporting period in 2019.

The new BRR process, BRR+, is now being rolled out. It will continue to ensure that Code compliance is central to the BRR process. Businesses that were classified as non-low risk under the old process will now be classified as moderate, moderate-high or high risk. LB will continue to carry out BRRs annually for all businesses that are not classified as low risk.

Work with representative bodies

HMRC has worked with representative bodies and other stakeholders to identify the areas of the Code guidance which might benefit from revision. The draft revised guidance was shared with these stakeholders in August 2019, and the updated guidance is published alongside this report. The updated guidance clarifies HMRC’s interpretation of the Code and provides greater transparency about HMRC’s processes.

Next annual report

The next annual report will cover the period 1 April 2019 to 31 March 2020 and will be published by 31 December 2020.

Annex A: List of banks which had adopted Code at 31 March 2019

Banks, Building Societies and Other Financial Institutions “Banks” Adopting or Readopting The Code of Practice on Taxation for Banks at 31 March 2019

This list includes all banks that have unconditionally adopted or readopted the Code. Adoption will cover all a group’s operations in the UK and, in the majority of cases, only an agreed principal name for the overall adopting group is shown.

Where requested HMRC has agreed to include names in addition to the principal group name if:

• the names on the Prudential Regulation Authority lists are so different that it would not be obvious that they are connected and covered by the same adoption, or
• a group operating in the UK does so through separately named and independently managed entities and their names are so different that it would not be obvious that they are connected

	Principal name	Adoption includes
1	Aareal Bank AG
2	ABC International Bank plc
3	ABN AMRO UK Group
4	Access Bank UK Ltd, The
5	ADIB (UK) Limited
6	Agricultural Bank of China (UK) Limited
7	Agricultural Bank of China Limited London Branch[footnote 7]
8	Ahli United Bank plc
9	Al Rayan Bank
10	Aldermore Bank plc
11	Alliance Trust plc
12	Allied Irish Banks plc Group	AIB Group (UK) plc
13	Allfunds Bank S.A.
14	Alpha Bank AE	Alpha Bank AE London branch and Alpha Bank London Ltd
15	ANZ Banking Group
16	Arab National Bank
17	Arbuthnot Banking Group plc
18	Atom Bank plc
19	Axis Bank UK Limited
20	B B Securities Limited
21	Banca IMI SpA London branch
22	Banca March (Spain) - London Branch
23	Banca Monte dei Paschi di Siena SpA - London Branch[footnote 8]
24	Banco Bilbao Vizcaya Argentaria S.A London Branch
25	Banco Bradesco Europe SA
26	Banco de Sabadell SA - London Branch
27	Banco do Brasil SA - London Branch
28	Bangkok Bank Public Co Limited
29	Bank Frick & Co AG
30	Bank Hapoalim BM
31	Bank J. Safra Sarasin (Gibraltar) Ltd
32	Bank Leumi (UK) plc
33	Bank Vontobel Europe AG
34	Bank of America Group
35	Bank of Baroda
36	Bank of Baroda (UK) Ltd[footnote 9]
37	Bank of Beirut (UK) Limited
38	Bank of Ceylon (UK) Ltd
39	Bank of China
40	Bank of Communications Co Ltd London Branch
41	Bank of Communications (UK) Limited
42	Bank of East Asia Limited
43	Bank of India
44	Bank of Ireland
45	Bank of London and The Middle East plc
46	Bank of Montreal
47	Bank of New York Mellon (UK Group)
48	Bank of Nova Scotia, The
49	Bank of the Philippine Islands (Europe) plc
50	Bank of Taiwan - London Branch
51	Bank Saderat plc
52	Bank Sepah International plc
53	Banque Chaabi du Maroc[footnote 10]
54	Banque Havilland SA
55	Bank Mandiri (Europe) Ltd
56	Banque Transatlantique
57	Barclays Bank
58	Bath Investment & Building Society
59	BAWAG PSK International
60	Bayerische Landesbank - London Branch
61	Beverley Building Society
62	BFC Bank Limited[footnote 11]
63	BIRA Bank Limited
64	BLOM Bank France – London Branch
65	BMCE Bank International plc
66	BNP Paribas
67	British Arab Commercial Bank plc
68	Brown Shipley
69	Buckinghamshire Building Society
70	Byblos Bank Europe SA
71	C Hoare & Co
72	CAF Bank
73	Caixabank SA
74	Caixa Geral De Depositos SA - London Branch
75	Cambridge & Counties Bank Limited
76	Cambridge Building Society
77	Canadian Imperial Bank of Commerce
78	Canara Bank
79	Carnegie Investment Bank AB
80	Cattles Limited[footnote 12]
81	Cecabank SA
82	Chang Hwa Commercial Bank Ltd - London Branch
83	Charity Bank Limited, The
84	Charter Savings Bank
85	Chetwood Financial Ltd
86	Chiba Bank Ltd - London Branch, The
87	China Citic Bank (London Branch)[footnote 13]
88	China Construction Bank (London) Ltd
89	China Construction Bank Corporation London Branch[footnote 14]
90	China Merchants Bank Co Ltd
91	Chorley & District Building Society
92	CIMB Bank Berhad - London Branch
93	Citadel Securities (Europe) Ltd
94	Citi
95	ClearBank Limited
96	Clearstream Banking S.A.
97	Close Brothers Group plc
98	Commerzbank AG
99	Commonwealth Bank of Australia, The
100	Commonwealth Trade Bank plc, The[footnote 15]
101	Co-operative Bank plc, The
102	Coventry Building Society
103	Crédit Agricole Group
104	Crédit Industriel et Commercial Group
105	Credit Suisse
106	Crown Agents Bank Limited
107	CYBG PLC[footnote 16]
108	Cynergy Bank Ltd[footnote 17]
109	Cumberland Building Society
110	Daiwa Capital Markets Europe Limited	Daiwa Corporate Advisory Limited, Daiwa Corporate Advisory Holdings Limited and Daiwa Asset Management (Europe) Ltd
111	Danske Bank A/S	Northern Bank Ltd
112	Darlington Building Society
113	DBS Bank Limited
114	DekaBank Deutsche Girozentrale[footnote 18]
115	Deutsche Bank AG
116	Deutsche Pfandbriefbank AG
117	DNB Bank ASA
118	Dudley Building Society
119	DVB Bank SE
120	DZ Bank
121	Earl Shilton Building Society
122	Ecology Building Society
123	EFG Private Bank Limited
124	Elavon Financial Services Designated Activity Company
125	Emirates NBD Bank (P.J.S.C)
126	Erste Group Bank AG - London Branch
127	Eurobank Private Bank Luxembourg S.A. London Branch
128	Europe Arab Bank plc
129	Export-Import Bank of India
130	FCMB Bank (UK) Limited
131	FBN Bank (UK) Limited
132	FCE Bank plc
133	First Abu Dhabi Bank P.J.S.C
134	First Commercial Bank - London Branch
135	FirstRand
136	Furness Building Society
137	Gatehouse Bank plc
138	Ghana International Bank plc
139	Goldman Sachs
140	Guaranty Trust Bank (UK) Limited
141	Gulf International Bank BSC (London Branch)
142	Gulf International Bank (UK) Limited
143	Habib Bank Zurich plc
144	Haitong Bank, S.A
145	Hampden & Co plc
146	Hampshire Trust Bank plc
147	Hanley Economic Building Society
148	Harpenden Building Society
149	Havin Bank Limited
150	Hauck & Aufhauser Privatbankiers AG[footnote 19]
151	HBL UK Banking Group	Habib Allied Holding Limited, Habibsons Bank Ltd
152	Hinckley & Rugby Building Society
153	Holmesdale Building Society[footnote 20]
154	HSBC Holdings plc
155	Hua Nan Commercial Bank Ltd - London Branch
156	ICBC Ltd London Branch
157	ICBC (London) Plc
158	ICBC Standard Bank plc
159	ICICI Bank UK Limited
160	Ikano Bank AB
161	IKB Deutsche Industriebank AG London Branch
162	Industrial and Commercial Bank of China Ltd ICBC
163	Industrial Bank of Korea - London Branch
164	ING
165	Intesa Sanpaolo S.p.A. - London Branch
166	Intesa Sanpaolo Private Banking S.p.A
167	Investec plc
168	Ipswich Building Society
169	Itau BBA International plc
170	Jefferies International Limited
171	Joh. Berenberg, Gossler & Co. KG
172	John Deere Bank S.A.
173	Jordan International Bank plc
174	JP Morgan
175	Julian Hodge Bank Limited
176	KAS Bank NV
177	KBC UK Banking Group	KBC Financial Products Ltd, KBC Bank NV - London Branch, and KBC Investments Ltd
178	KEB Hana Bank
179	Kexim Bank (UK) Limited
180	KfW IPEX-Bank GmbH - London Branch
181	Kingdom Bank Limited
182	Kookmin Bank International Limited[footnote 21]
183	Kookmin Bank Co Ltd London Branch[footnote 22]
184	Korea Development Bank - London Branch, The
185	Landesbank Baden-Wϋrttemberg
186	Landesbank Hessen-Thüringen Girozentrale (London Branch)
187	Leeds Building Society
188	Leek United Building Society
189	Lenlyn Holdings plc	R Raphael and Sons plc
190	Lloyds Banking Group plc	Lloyds Bank plc and Bank of Scotland plc (including Halifax)
191	Lombard Odier (Europe) SA
192	Loughborough Building Society
193	Macquarie Group
194	MainFirst Bank AG
195	Masthaven Ltd
196	Malayan Banking Berhad
197	Manchester Building Society
198	Mansfield Building Society
199	Market Harborough Building Society
200	Marsden Building Society
201	Mashreq Bank Psc - London branch
202	Mediobanca- Banca di Credito - London branch
203	Mega International Commercial Bank - London Branch
204	Melli Bank plc
205	Melton Mowbray Building Society
206	Methodist Chapel Aid Limited
207	Metro Bank plc
208	Mirabaud and Cie (Europe) SA UK Branch
209	Mitsubishi UFJ Financial Group	Mitsubishi UFJ Securities International plc, The MUFG Bank Ltd, Mitsubishi UFJ Trust & Banking Corporation - London Branch, Mitsubishi UFJ Trust International Limited and Mitsubishi UFJ Asset Management (UK) Ltd
210	Mizrahi Tefahot Bank Limited
211	Mizuho UK Banking Group	Mizuho International plc, Mizuho Bank - London Branch and Mizuho Capital Markets (UK) Ltd
212	Monmouthshire Building Society
213	Monzo Bank Ltd
214	Morgan Stanley
215	Nacional Financiera SNC - London Branch
216	National Australia Bank Limited
217	National Bank Financial Inc UK Branch
218	National Bank Of Canada - London Branch
219	National Bank of Egypt (UK) Limited
220	National Bank of Greece UK	National Bank of Greece SA London Branch, NBGI Private Equity Ltd, NBG International Ltd, NBG GP Ltd, NBG Finance plc, NBG Finance (Dollar) plc and NBG Finance (Sterling) plc
221	National Bank of Kuwait (International) plc
222	National Counties Building Society
223	Nationwide Building Society
224	Natixis
225	Nedbank
226	Newbury Building Society
227	Newcastle Building Society
228	NIBC Bank NV
229	Noble Grossart Holdings Limited
230	Nomura UK Group
231	NORD/LB Group	NORD/LB Norddeutsche Landesbank Girozentrale and Deutsche Hypothekenbank Aktiengesellschaft
232	Nordea Bank Abp[footnote 23]
233	Norinchukin Bank - London Branch, The
234	North Lanarkshire Municipal Bank Limited
235	Northern Trust Company, The
236	Nottingham Building Society
237	Novo Banco SA[footnote 24]
238	OakNorth Bank
239	OneSavings Bank plc
240	Oversea-Chinese Banking Corporation - London Branch
241	Paragon Group PLC
242	PCF Bank Limited
243	Penrith Building Society
244	Persia International Bank
245	Philippine National Bank (Europe) plc
246	Pictet & Cie (Europe) S.A., London Branch
247	Piraeus Bank SA - London Branch
248	Portigon
249	Principality Building Society
250	Progressive Building Society
251	Provident Financial Group
252	PT Bank Negara Indonesia (Persero) Tbk - London Branch
253	Punjab National Bank (International) Limited
254	Qatar National Bank (Q.P.S.C)
255	QIB (UK) plc
256	Rabobank
257	Raiffeisen International Bank AG - London branch
258	Rathbone Brothers plc
259	RCI Banque UK
260	Redwood Bank Ltd[footnote 25]
261	Reliance Bank Limited
262	Riyad Bank - London Branch
263	Royal Bank of Canada
264	Royal Bank of Scotland Group plc, The	NatWest Markets plc, National Westminster Bank plc, Ulster Bank Ltd, Coutts and Company, and The Royal Bank of Scotland plc
265	Saffron Building Society
266	Sainsbury’s Bank plc
267	Samba Financial Group - London Branch[footnote 26]
268	Santander
269	Schroders plc
270	Scottish Building Society
271	Secure Trust Bank
272	Shanghai Commercial Bank Limited
273	Shanghai Pudong Development Bank Co Limited[footnote 27]
274	Shawbrook Bank Limited
275	Shinhan Bank - London Branch
276	Siemens Bank GmbH
277	Silicon Valley Bank UK Branch
278	Skandinaviska Enskilda Banken AB
279	Skipton Building Society
280	Smith and Williamson Investment Services Ltd
281	Société Générale	Kleinwort Benson
282	Sonali Bank (UK) Limited
283	Stafford Railway Building Society
284	Standard Chartered Bank
285	Starling Bank Limited
286	State Bank of India
287	State Bank of India (UK) Limited[footnote 28]
288	State Street
289	Sumitomo Mitsui Banking Corporation Europe
290	Sumitomo Mitsui Trust Bank Limited
291	Svenska Handelsbanken AB (publ)	Svenska Handelsbanken AB (publ) UK Branch and Handelsbanken Finans AB (publ) UK Branch[footnote 29], Handelsbanken Plc
292	Swansea Building Society
293	Syndicate Bank - London Branch
294	T C Ziraat Bankasi
295	Tandem Bank Limited
296	TD Bank Group
297	Teachers Building Society
298	Tesco Bank
299	Tipton & Coseley Building Society
300	Triodos Bank NV
301	TSB Banking Group and Subsidiaries (TSB Group)	TSB Banking Group, TSB Bank plc, TSB Scotland Nominees Ltd, TSB Scotland (Investment) Nominees Ltd.
302	Turkish Bank (UK) Ltd
303	Turkiye Is Bankasi AS - London Branch
304	UBS AG
305	UniCredit Banking Group
306	Union Bancaire Privée UBP SA
307	Union Bank of India (UK) Limited
308	Union Bank UK plc
309	United National Bank Limited
310	United Bank for Africa (UK) Limited[footnote 30]
311	United Overseas Bank Limited
312	Unity Trust Bank plc
313	United Trust Bank Limited
314	Vernon Building Society
315	Virgin Money[footnote 31]	Clydesdale Bank PLC, Yorkshire Bank[footnote 32]
316	Volkswagen bank GMBH
317	VTB Capital plc
318	Weatherbys Bank Limited
319	Wells Fargo & Co
320	Wesleyan Bank Limited
321	West Bromwich Building Society
322	Western Union International Bank Gmbh
323	Westpac Banking Corp - London
324	Woori Bank - London Branch
325	Wyelands Bank plc
326	Yorkshire Building Society
327	Zenith Bank (UK) Limited
328	Zopa Bank Limited[footnote 33]

Annex B: List of banks which had not adopted Code at 31 March 2019

The list is drawn from banks that HMRC know to be in the bank levy population (ignoring the £20 billion threshold) and banks on the list of Banks and Building Societies at 31 March 2019 as published by the Prudential Regulatory Authority.

• BGC Brokers L.P.
• Cantor Fitzgerald Europe
• LHV Bank
• N26 Bank Gmbh
• Klarna

To note:

• N26 Bank Gmbh have adopted the Code since 31 March 2019
• Klarna have adopted the Code since 31 March 2019

1. The list of adopters at 31 March 2018 included one entry for China Construction Bank rather than separate entries for the London branch and the UK subsidiary, which have each adopted the Code separately. The number of adopters at 31 March 2018 was therefore 316 rather than 315 as reported. ↩

2. As defined in Section 285(4)-(6), Finance Act 2014. ↩

3. For an explanation of Code approaches see section HMRC’s response to Code approaches ↩

4. The Governance Protocol has four levels of escalation. The first level of escalation is to directors of HMRC and board level of the bank. HMRC’s process for dealing with concerns is set out in detail in chapter 6 of the newly published guidance. ↩

5. A bank will only be included in this category where Senior Civil Service grade staff in HMRC’s Large Business and Business, Assets & International directorates have given approval to discuss the concerns with the bank. ↩

6. A bank will only be included in this category when the case has been considered by the Tax Disputes Resolution Board and the Board have concluded that the bank has breached the Code. ↩

7. Agricultural Bank of China Ltd London Branch adopted the Code in the period this report covers ↩

8. Banca Monte dei Pashi di Siena SPA – London Branch ceased trading before 31 March 2019 ↩

9. Bank of Baroda (UK) Ltd adopted the Code in the period this report covers ↩

10. Banque Chaabi du Maroc ceased trading before 31 March 2019 ↩

11. BFC Bank Ltd adopted the Code in the period this report covers ↩

12. Cattles Ltd ceased to trade before 31 March 2019 ↩

13. China Citic Bank (London Branch) adopted the Code in the period this report covers ↩

14. China construction Bank (London) Ltd and China Construction Bank Corporation London Branch were previously shown as one entry, but these two entities adopted separately ↩

15. The Commonwealth Trade Bank plc is the new name for Diamond Bank (UK) Plc ↩

16. CYBG plc acquired Virgin Money plc during October 2018. CYBG plc then changed its name to Virgin Money UK plc in October 2019. The adoption for the new Virgin Money group is entry 315 on this list ↩

17. Cynergy Bank Ltd is the new name for Bank Of Cyprus UK Ltd ↩

18. DekaBank Deutsche Girozentrale adopted the Code in the period this report covers ↩

19. Hauck & Aufhauser Privatbankiers AG (previously Hauck & Aufhauser Privatbankiers Kommanditgesellschaft) adopted the Code in the period this report covers ↩

20. Holmesdale Building Society merged with Skipton Building Society in the period this report covers ↩

21. Kookmin Bank International Limited ceased banking activity in the period this report covers ↩

22. Kookmin Bank Co Ltd London Branch adopted the Code in the period this report covers ↩

23. Adoption is now by Nordea Bank Abp (previously Nordea Bank AB) ↩

24. Novo Banco ceased trading before 31 March 2019 ↩

25. Redwood Bank Ltd adopted the Code in the period this report covers ↩

26. Samba Financial Group – London Branch ceased trading before 31 March 2019 ↩

27. Shanghai Pudong Development Bank Co Ltd adopted the Code in the period this report covers ↩

28. State Bank of India (UK) Limited adopted the Code in the period this report covers ↩

29. Svenska Handelsbanken AB (publ) UK Branch and Handlesbanken Finans AB (publ) UK Branch ceased trading before 31 March 2019 ↩

30. United Bank for Africa (UK) Limited adopted the Code in the period this report covers ↩

31. Virgin Money PLC was acquired by CYBG plc during this reporting period. CYBG plc changed its name to Virgin Money UK plc in October 2019 ↩

32. Yorkshire Bank is a trading name of Clydesdale Bank PLC ↩

33. Zopa Bank Limited adopted the Code in the period this report covers ↩