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HMRC internal manual

Bank Levy Manual

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Relevant entities and groups: relevant groups: US GAAP exception for determining group members

Paragraphs 4(5) - (7) of Schedule 19

In order to reduce the compliance burden where a group’s consolidated financial statements are drawn up under US GAAP, the definition of the relevant group differs if certain conditions are met. Where:

  • the parent is not resident in the UK, and
  • US GAAP is a generally accepted basis of preparation for financial statements for an entity resident in the territory of the parent entity, and
  • the parent entity prepares consolidated financial statements for the chargeable period under US GAAP

US GAAP may be used to determine the members of the relevant group.

This will mean that in such a case, the relevant group will be the parent and any entities that are included in the parent’s consolidated financial statements at the end of the chargeable period as drawn up using US GAAP.