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HMRC internal manual

Banking Manual

Banking surcharge: surcharge allowance: information to be included on banking company’s tax return

CTA10/S269DE(2)&(6), S269DJ(2)&(5)

A banking company must specify its surcharge allowance for its accounting period in its tax return. 

  • For a banking company that is not part of a group or is the only banking company in a group see BKM404200 for details of how the allowance is computed. If the banking company does not have any CFC chargeable profits, this is the allowance which should be specified in its tax return.

 

  • For a banking company that, throughout its accounting period, is part of a group with more than one banking company, its surcharge allowance will be the amount shown on the group allowance allocation statement or statements which cover that accounting period (BKM404500).  If the banking company does not have any CFC chargeable profits, this is the allowance which should be specified in its tax return.

 

  • For a banking company that is part of a group with more than one banking company for only part of its accounting period, its surcharge allowance is the amount calculated at BKM404300.  If the banking company does not have any CFC chargeable profits, this is the allowance which should be specified in its tax return.

Banking company with CFC chargeable profits

The banking company can choose to allocate all or part of the allowance against its surcharge profits BKM403300 or can take all or part of the allowance into account in arriving at the tax due on its CFC chargeable profits.  See BKM403200 for details of how to calculate the CFC chargeable profits for a banking company.