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HMRC internal manual

Bank Levy Manual

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HM Revenue & Customs
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Relevant entities and groups: banking groups: conditions to be met to be a banking group: the exempt activities condition: trading income of the group

Paragraph 13(2) of Schedule 19 - group’s consolidated financial statements

The trading income of the relevant group (definition at BKLM241000) is determined from the group’s consolidated financial statements (prepared under IAS, or where group is determined by paragraph 4(7) using US GAAP).

Where no such consolidated financial statements are prepared, then the trading income is the amount which would have been so disclosed if consolidated financial statements had been prepared under IAS.

Paragraph 13(3) of Schedule 19 - items included in trading income

The trading income of the relevant group is the total of:

  • The group’s gross income for the chargeable period arising from its buying, holding, managing and selling of assets. This:

    • excludes activities normally reported on a net basis in consolidated financial statements, and
    • disregards any deductions including expenses.
  • The group’s net income for the chargeable period arising from its net basis activities.

‘Net basis activities’ are activities normally reported on a net basis in financial statements prepared in accordance with IAS (or US GAAP where the group is determined by paragraph 4(7) using US GAAP) - see BKLM242660.