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HMRC internal manual

Banking Manual

Banking surcharge: definition of banking company: excluded entities - asset management activities


The list of excluded companies include companies carrying on asset management activities.  These activities comprise (or would comprise, if carried on in the UK) the following activities:  

Acting as the operator of a collective investment scheme

A company is an operator of a collective investment scheme where it satisfies the regulatory definition in sections 235 and 237 of FSMA 2000.

Acting as an authorised corporate director

An authorised corporate director is defined in the FCA Handbook

Acting as a discretionary investment manager for clients other than linked entities

Discretionary investment manager is not defined in the legislation.  The FCA Handbook defines this as ‘a person who, acting only on behalf of a client, manages designated investments in an account or portfolio on a discretionary basis under the terms of a discretionary management agreement’.

For the purpose of determining if a company carries out asset management activities, linked entities means any of the following:

  • a member of the same group
  • a company in which a member of the same group holds a major interest (see CTA09/S473)
  • a partnership the members of which include a member of the same group which has at least a 40% share of the profits and losses (see Part 17 of CTA 2009)

In each case the conditions are to be tested for the accounting period in question.