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HMRC internal manual

Bank Levy Manual

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: asset management and related activities

Paragraph 71 of Schedule 19

Asset management activities are activities which consist of (or, if they were carried on in the UK, would consist of) any or all of the following:

  • acting as the operator of a collective investment scheme (within the meaning of Part 17 of FISMA)
  • acting as a discretionary investment manager for clients none of which is a ‘linked entity’ (see below), and
  • acting as an ‘authorised corporate director’ within the meaning of the FSA’s Handbook of Rules and Guidance.

The calculation of income arising from exempt activities does not include ‘linked entity’ transactions. A ‘linked entity’, in relation to an entity (‘E’), is:

  • a member of the same group as E
  • a company in which a company member of the same group as E has a major interest (within the meaning of Part 5 of CTA 2009 (loan relationships)), or
  • a partnership where the members include an entity:

    • that is a member of the same group as E, and
    • whose share of the profits or losses of a trade carried on by the partnership for that accounting period is at least a 40% share (see Part 17 of CTA 2009 and BIM72200 - external users can find the guidance at - onwards for provisions of shares of partnership profits and losses).

See BKLM260000 for more about banking partnerships.