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HMRC internal manual

Banking Manual

Banking surcharge: surcharge allowance: group allowance allocation statement

CTA10/S269DG

The nominated company is responsible for providing HMRC with a statement setting out how the group allowance is to be allocated between its banking companies.   This is relatively straightforward where the nominated company and each of the banking companies share the same accounting period and the nominated company remains the same throughout the accounting period.  It is more complex where one or more of the other banking companies in the group have a different accounting period or the nominated company changes.  

Example involving banking companies with different accounting periods:

  • Group ABC plc has 3 banking companies.  All 3 companies are members of the group at 31 December 2018 and 31 December 2019.

 

  • Company A is the nominated company and its accounting period is 1 January 2018 to 31 December 2018.  As the accounting period is 12 months, the group surcharge allowance available is £25m.  It would be less if the accounting period was shorter, or Company A was the nominated company for only part of its accounting period.  The group allowance statement must provide details of the allowance allocated to Company A for the period 1 January 2018 to 31 December 2018.

 

  • Company B’s year end is 30 September.   The group allowance statement must provide details of the allowance allocated to Company B for the period 1 January 2018 to 30 September 2018 (part of Company B’s accounting period ended 30 September 2018) and for the period 1 October 2018 to 31 December 2018 (part of Company B’s accounting period ended 30 September 2019).

 

  • Company C has a year end of 31 March and the first accounting period for which it is a banking company is the year ended 31 March 2019.   The group allowance statement must provide details of the allowance allocated to Company C for the period 1 April 2018 to 31 December 2018.

If the nominated company ceases to be the nominated company before it has submitted the group allowance allocation statement for an accounting period, the replacement nominated company must submit the statement.  Where the new nomination takes effect on a date before the new nomination is made any group allowance allocation statement already submitted remains valid.