Other tax rules on corporate finance: banks
A bank will generally have a loan relationship whenever it is a creditor or debtor for a money debt. This will include gilts, bonds, mortgage loans and deposits.
The loan relationship and derivative contract rules apply to banks in the same way as they do to other companies.
Making loans and advances is an integral part of a bank’s trade (see BIM40805 for details of what is meant by ‘integral part of the trade’) and so the bank will invariably have trading loan relationships as a creditor.
See CFM14000+ for the definition of a bank and the regulatory rules that apply to banks
See CFM71030 for the treatment of dormant accounts by banks
See CFM75000+ for the tax deduction rules to be applied by banks