BKM402200 - Banking surcharge: definition of banking company: the conditions

CTA10/S269B

A company is a banking company if it is not an excluded entity and meets the following conditions at any time during the chargeable accounting period:

• the residence condition (Condition A)
• the financial sector condition (Condition C)
• either of:
  • the deposit-taker condition, or
  • the investment banking condition (Conditions D & E)

A company will also be a banking company if it is not an excluded entity and is a member of a partnership which meets all of the following conditions at any time during the chargeable accounting period:

• the residence condition
• the financial sector condition
• either of:
  • the deposit-taker condition, or
  • the investment banking condition

A partnership includes a limited liability partnership and an entity established overseas of a similar character to a partnership. ‘Member’ in relation to a partnership is to be read accordingly.

A company will be a banking company if it is a building society as defined by the Building Society Act 1986 or a bank established under the Savings Bank (Scotland) Act 1819.