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HMRC internal manual

Bank Levy Manual

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HM Revenue & Customs
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Collection and management: responsible member for groups: the nominated entity

Paragraph 54 of Schedule 19

In the vast majority of cases the responsible member will be decided by the group nominating its own responsible member for a chargeable period.

The entity nominated must however meet certain conditions in order to become the responsible member for a chargeable period.

These conditions set out in paragraph 54(3) are that:

  • the entity is a ‘chargeable member of the relevant group’. This term is defined in paragraph 53(3) of the Schedule as an entity that is within the charge to Corporation Tax at the end of the chargeable period and is:

    • a member of the banking or building society group, or
    • where the group is a relevant non-banking group, a member of a relevant UK banking sub-group, a UK resident bank (covered by paragraph 19(10)), an entity (covered by paragraph 19(11)) or a relevant foreign bank (covered by paragraph 19(17)).

Both securitisation companies (as defined) and limited liability partnerships (LLPs) forming part of a covered bond arrangement are excluded from being chargeable members and so cannot be the responsible member (BKLM433100).

  • The entity is within the charge to Corporation Tax at the end of the chargeable period.
  • The entity has an accounting period for Corporation Tax that is the same as the chargeable period. This means the accounting period must both start and end on the same day as the chargeable period.
  • The entity was nominated by the parent (or on behalf of the parent) to be the responsible member within 45 days of the start of the chargeable period, and
  • HMRC do not reject the nomination (BKLM442100).

There were special transitional rules for dealing with nominations for chargeable periods starting on or before Finance Act 2011 received Royal Assent - see BKLM442200.