BKM401300 - Banking surcharge: introduction: overview of the legislation

CTA10/Part 7A Chapter 4

»Ê¹ÚÌåÓýappse rules are relevant to banking companies and bring in a surcharge on the profits of these companies. »Ê¹ÚÌåÓýapp profits are calculated on the same basis as for corporation tax, but with certain adjustments â€� see below. »Ê¹ÚÌåÓýapp surcharge is levied on profits of banking companies for accounting periods beginning on or after 1 January 2016 (including accounting periods that straddle that date. See BKM409000 for the commencement rules.

»Ê¹ÚÌåÓýapp surcharge is treated as an amount chargeable as if it were CT. Double taxation relief will be allowed on the surcharge on a similar basis as for CT (BKM407100).

»Ê¹ÚÌåÓýapp profits for the purposes of the surcharge will be the “taxable total profitsâ€� (CTA10/S4) with the following adjustments:

add

  • any group relief for the period from non-banking companies (BKM403400)
  • any losses arising before 1 January 2016 or, if later before the company became a non-banking company (BKM403500)
  • any chargeable gains transferred out to non-banking companies (BKM403850)

deduct

  • any chargeable gains transferred in from non-banking companies (BKM403850)
  • any R&D expenditure credits (BKM403900)