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HMRC internal manual

Banking Manual

Bank loss restriction: definition of banking company: excluded entity

CTA10/S269BA

A company is not a banking company if is an excluded entity.   An excluded entity is one which either:

  • carries on a type of business to which this measure is not intended to apply: insurers, credit unions and friendly societies, or
  • only undertakes a single specified activity (line of business) that would not commonly be considered to constitute banking , or
  • in addition to carrying on this single line of business referred to above it undertakes a second line of business, other than deposit taking, and the company’s activities in that line of business would not, on their own, result in it being both an IFPRU 730K firm and a full scope IFPRU investment firm if it only carried on this second line of business.

Some types of business are specifically excluded from being banking companies and are therefore outside the scope of the loss restriction. The following types of entities are excluded entities: