BKM402950 - Banking surcharge: definition of a group for purpose of banking surcharge - examples
Example 1
- Company A is a subsidiary of Group X until 31 January 2017 when it is sold to Group Y
- Company A has a chargeable accounting period 1 April 2016 to 31 March 2017
- Both Group X and Group Y make up their accounts to 31 December
Company A will be included in the consolidated financial statements of Group X at 31 December 2016 and in the consolidated financial statements of Group Y at 31 December 2017. Therefore, for the purposes of the banking surcharge and the allocation of any surcharge allowance, Company A is a member of Group X for the first 9 months of its chargeable accounting period ended 31 March 2017 and a member of Group Y for the last 3 months.
Example 2
- Company A is a subsidiary of Group X until 31 October 2016 when it is sold to Group Y
- Company A has a chargeable accounting period 1 April 2016 to 31 March 2017
- Both Group X and Group Y make up their accounts up to 31 December
Company A will not be included in the consolidated financial statements of Group X at 31 December 2016. It will be included in the consolidated financial statements of Group Y at 31 December 2016 and 31 December 2017. Therefore, for the purpose of the banking surcharge and the allocation of any surcharge allowance, it is a member of Group Y for the whole of its chargeable accounting period 1 April 2016 to 31 March 2017.