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HMRC internal manual

Banking Manual

Banking surcharge: surcharge allowance: banking company not in a group or only banking company in a group

CTA10/S269DJ

A banking company which is not in a group containing other banking companies for any part of its chargeable accounting period has a maximum available surcharge allowance of £25m.    For accounting periods of less than 12 months the amount is proportionally reduced.  

Example

  • Company A has an accounting period 1 April 2016 to 31 March 2017
  • Company A is one of two banking companies in Group X
  • Company A leaves Group X on 31 October 2016 and joins Group Y on the same day.
  • Company A is the only banking company in Group Y
  • Company A is still a member of Group Y at 31 December 2017.
  • Groups X and Y both make their accounts up to 31 December. 

For the purposes of the banking surcharge Company A is a member of Group Y for the whole of its accounting period ended on 31 March 2017 as it is included in the consolidated financial statements of Group Y at 31 December 2016 and 31 December 2017 (BKM402900). As Company A is the only banking company in Group Y it is entitled to the maximum available surcharge allowance of £25m.