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Banking Manual
Publication Date:
2023
Publisher:
Bloomsbury Professional
Copyright:
2023 Crown copyright
Banking Manual
Guidance on bank specific taxes and issues
Last update
: 27th October 2023
GO
Contents
Contents
Expand All
Collapse All
Close section
BKM200000: Bank compensation restriction: contents
Close section
BKM201000: Introduction
BKM201200: Introduction: background to bank compensation restriction
BKM201300: Introduction: overview of the legislation
Close section
BKM202000: Definitions
BKM202100: Definitions: meaning of compensation
BKM202200: Definitions: meaning of customer
BKM202300: Definitions: meaning of conduct issues
Close section
BKM203000: Excluded expenses
BKM203100: Excluded expenses: overview
BKM203200: Excluded expenses: administrative errors
BKM203250: Excluded expenses: administrative errors - examples
BKM203300: Excluded expenses: failure of an electronic system
BKM203400: Excluded expenses: expenses in respect of loss or damage attributable to third parties
BKM203450: Excluded expenses: expenses in respect of loss or damage attributable to third party - examples
BKM203500: Excluded expenses: single errors with compensation payable to a single customer
BKM203550: Excluded expenses: single errors with compensation payable to a single customer - examples
Close section
BKM204000: Disclosure condition
BKM204100: Disclosure condition: overview
BKM204200: Disclosure condition: meaning of relevant document
BKM204300: Disclosure condition: example - disclosures
BKM204400: Disclosure condition: example - time limits
Close section
BKM205000: Uplift to reflect administrative expenses
BKM205100: Uplift to reflect administrative expenses
Close section
BKM206000: Unwinding provisions
BKM206100: Unwinding provisions: overview
BKM206200: Unwinding provisions: difficulties with bank compensation provisions
BKM206300: Unwinding provisions: examples
BKM206350: Unwinding provisions: example including provision for administration costs
Close section
BKM207000: Definition of banking company: contents
BKM207100: Definition of banking company: introduction
BKM207200: Definition of banking company: the conditions
BKM207300: Definition of banking company: financial sector condition
BKM207350: Definition of banking company: deposit taker condition
BKM207400: Definition of banking company: the investment banking condition
BKM207450: An FCA investment firm that meets the conditions in CTA09/S133H(1B)
BKM207500: Definition of banking company: excluded company
BKM207550: Definition of banking company: excluded companies - insurance
BKM207600: Definition of banking company: excluded companies: asset management including pension schemes and investment trusts
BKM207650: Definition of banking company: excluded companies - asset management activities
BKM207700: Definition of banking company: excluded companies - commodities and emission allowance dealer
BKM207750: Definition of banking company: excluded companies - spread betting
BKM207775: Definition of banking company: excluded companies - other companies
BKM207800: Definition of banking company: excluded companies - companies carrying on a second line of business
BKM207900: Definition of banking company: excluded companies - definition of a group for purpose of the excluded companies test
Close section
BKM208000: Qualifying company
BKM208100: Qualifying company: overview
BKM208200: Qualifying company: arm's length arrangements: overview
BKM208300: Qualifying company: arm's length arrangements with profit element
Close section
BKM209000: Commencement
BKM209100: Commencement: overview
BKM209200: Commencement: examples
BKM209300: Commencement: role of CCM and HMRC case team
Close section
BKM300000: Bank loss restriction: contents
Close section
BKM301000: Introduction
BKM301100: Introduction: overview of legislation
BKM301400: Introduction: overview of the legislation - additional features
Close section
BKM302000: Definition of banking company: contents
BKM302100: Definition of banking company: introduction
BKM302200: Definition of banking company: the conditions
BKM302250: Definition of banking company: residence condition
BKM302300: Definition of banking company: financial sector condition
BKM302350: Definition of banking company: deposit taker condition
BKM302400: Definition of banking company: the investment banking condition
BKM302425: An FCA investment firm that meets the conditions in CTA10/S269B(6B)
BKM302450: Definition of banking company: relevant regulated activities
BKM302500: Definition of banking company: excluded entity
BKM302550: Definition of banking company: excluded entities - insurance
BKM302600: Definition of banking company: excluded entities: asset management including pension schemes and investment trusts
BKM302650: Definition of banking company: excluded entities - asset management activities
BKM302700: Definition of banking company: excluded entities - commodities and emission allowance dealers
BKM302750: Definition of banking company: excluded entities - spread betting
BKM302775: Definition of banking company: excluded entities - other companies
BKM302800: Definition of banking company: excluded entities - companies carrying on a second line of business
BKM302900: Definition of a group for purpose of bank loss restriction
Close section
BKM303000: Carried-forward reliefs to which restriction applies
BKM303100: Carried-forward reliefs to which restriction applies: introduction
BKM303150: Carried-forward reliefs to which restriction applies: relevant carried forward losses
BKM303200: Carried-forward reliefs to which restriction applies: relevant carried forward losses - amount available
BKM303250: Carried-forward reliefs to which restriction applies: relevant carried forward losses - normal rules
Close section
BKM304000: Calculation of carried-forward reliefs available
BKM304100: Calculation of carried-forward reliefs available: overview
BKM304200: Calculation of carried-forward reliefs available - interaction with calculation of taxable total profits
BKM304300: Calculation of carried-forward reliefs available: calculation of relevant profit apes 1/4/15 to 31/3/17 - steps 1 to 4
BKM304400: Calculation of carried-forward reliefs available: calculation of relevant profit apes 1/4/15 to 31/3/17 - steps 5 to 7
BKM304500: Calculation of carried-forward reliefs available: calculation of relevant profit apes 1/4/15 to 31/3/17 - assumed allocation of relief
BKM304600: Calculation of carried-forward reliefs available: no impact on claims to double taxation relief
BKM304700: Calculation of carried-forward reliefs available: where banking company has more than one trade
BKM304800: Calculation of carried-forward reliefs available: effect on the availability of other reliefs
BKM304850: Calculation of carried-forward reliefs available: effect on the availability of other reliefs - an example
BKM304900: Calculation of carried-forward reliefs available: particular considerations for group and consortium relief under CTA10/PART5
Close section
BKM305000: Calculation of carried-forward reliefs available - APs from 1/4/17
BKM305100: Calculation of carried-forward reliefs available: calculation of relevant profit APs from 1/4/17 - general
BKM305200: Calculation of carried-forward reliefs available: calculation of relevant profit APs from 1/4/17 - modified total profits
BKM305300: Calculation of carried-forward reliefs available: calculation of relevant profit APs from 1/4/17 - trading and non-trading profits
BKM305400: Calculation of carried-forward reliefs available: calculation of relevant profit APs from 1/4/17 - in-year reliefs and qualifying profits
BKM305500: Calculation of carried-forward reliefs available: calculation of relevant profit APs from 1/4/17 - deductions allowance
BKM305600: Calculation of carried-forward reliefs available: calculation of relevant profit APs from 1/4/17 - relevant profits
BKM305700: Calculation of carried-forward reliefs available: calculation of relevant profit APs from 1/4/17 - summary of calculation
Close section
BKM306000: Carried forward reliefs outside the restriction
BKM306100: Carried forward reliefs outside the restriction: overview apes 1/4/15 - 31/3/17
BKM306300: Carried forward reliefs outside the restriction: reliefs carried-back from later periods
BKM306350: Carried forward reliefs outside the restriction: reliefs carried-back from later periods - non-trading deficits
BKM306400: Carried forward reliefs outside the restriction: reliefs arising before a company begins relevant regulated activity
BKM306500: Carried forward reliefs outside the restriction: reliefs for new entrant banks
BKM306550: Carried forward reliefs outside the restriction: reliefs for new entrant banks - extra information
BKM306700: Carried forward reliefs outside the restriction: allowance for building societies: overview
BKM306800: Carried forward reliefs outside the restriction: allowance for building societies - allocation of allowance within building society group
BKM306850: Carried forward reliefs outside the restriction: allowance for building societies - re-allocation of allowance within building society group
Close section
BKM307000: Targeted anti-avoidance rules
BKM307100: Targeted anti-avoidance rules: overview
BKM307200: Targeted anti-avoidance rules: scope of arrangements
BKM307300: Targeted anti-avoidance rule: meaning of tax value and non-tax value
BKM307400: Targeted anti-avoidance rule: meaning of tax value and non-tax value - tax value
BKM307450: Targeted anti-avoidance rule: meaning of tax value and non-tax value - tax value examples
BKM307500: Targeted anti-avoidance rule: meaning of tax value and non-tax value - non-tax value
BKM307600: Targeted anti-avoidance rule: effect where the TAAR applies
BKM307700: Targeted anti-avoidance rule: example of where the TAAR would apply
BKM307750: Targeted anti-avoidance rule: situations where the TAAR would not apply
BKM307800: Targeted anti-avoidance rule: anti-forestalling rule
BKM307900: Targeted anti-avoidance rule: code of practice on taxation for banks and the TAAR
Close section
BKM308000: Effect on CFC charge
BKM308100: Effect on CFC charge: no use of relevant carried-forward reliefs against CFC charge
Close section
BKM309000: Commencement rules
BKM309100: Commencement rules: periods straddling 1 April 2015 or 1 April 2016
BKM309200: Commencement rules: periods straddling 1 April 2017
Close section
BKM310000: Example of calculation of carried forward reliefs available: contents
BKM304950: Example of calculation of carried-forward reliefs available: rules applying for periods from 1 April 2015 to 31 March 2017
BKM305800: Example of calculation of carried-forward reliefs available: rules applying for periods from 1 April 2017
BKM310100: Example of calculation of carried-forward reliefs available: rules applying for periods from 1 April 2015 to 31 March 2017
BKM310200: Example of calculation of carried-forward reliefs available: rules applying for periods from 1 April 2017
Close section
BKM400000: Banking surcharge: contents
Close section
BKM401000: Introduction
BKM401300: Introduction: overview of the legislation
BKM401400: Introduction: overview of the legislation - additional features
Close section
BKM402000: Definition of a banking company: contents
BKM402100: Definition of banking company: introduction
BKM402200: Definition of banking company: the conditions
BKM402250: Definition of banking company: residence condition
BKM402300: Definition of banking company: financial sector condition
BKM402350: Definition of banking company: deposit taker condition
BKM402375: Definition of banking company: deposit taker condition - de minimis exclusion
BKM402400: Definition of banking company: the investment banking condition
BKM402425: An FCA investment firm that meets the conditions in CTA10/S269B(6B)
BKM402450: Definition of banking company: relevant regulated activities
BKM402500: Definition of banking company: excluded entity
BKM402550: Definition of banking company: excluded entities - insurance
BKM402600: Definition of banking company: excluded entities - asset management including pension schemes and investment trusts
BKM402650: Definition of banking company: excluded entities - asset management activities
BKM402675: Definition of banking company: excluded entities - asset managers who are deposit takers
BKM402700: Definition of banking company: excluded entities - commodities
BKM402750: Definition of banking company: excluded entities - spread betting
BKM402775: Definition of banking company: excluded entities: other companies
BKM402800: Definition of banking company: excluded entities - companies carrying on a second line of business
BKM402900: Definition of a group for purpose of banking surcharge
BKM402950: Definition of a group for purpose of banking surcharge - examples
Close section
BKM403000: Calculation of surcharge profits
BKM403100: Calculation of surcharge profits: CT surcharge
BKM403150: Calculation of surcharge profits: CT surcharge - computing taxable total profits
BKM403200: Calculation of surcharge profits: banking company liable to a CFC charge
BKM403250: Calculation of surcharge profits: is banking company liable to a CFC charge?
BKM403300: Calculation of surcharge profits: allocation of surcharge allowance
BKM403400: Calculation of surcharge profits: non-banking group relief
BKM403450: Calculation of surcharge profits: non-banking group relief - definition of EEA banking company
BKM403500: Calculation of surcharge profits: non-banking or pre-2016 loss relief
BKM403625: Calculation of surcharge profits: non-banking or pre-2016 loss relief - order of set off
BKM403650: Calculation of surcharge profits: non-banking or pre-2016 loss relief - capital loss - effect of s171A election
BKM403700: Calculation of surcharge profits: non-banking or pre-2016 loss relief - non trading loss on intangibles
BKM403800: Calculation of surcharge profits: chargeable gains - s171 transfers between banking and non-banking companies
BKM403850: Calculation of surcharge profits: chargeable gains - s171A transfers between banking and non-banking companies
BKM403900: Calculation of surcharge profits: research and development expenditure credits
Close section
BKM404000: Surcharge allowance
BKM404100: Surcharge allowance: introduction
BKM404200: Surcharge allowance: banking company not in a group or only banking company in a group
BKM404300: Surcharge allowance: banking company in a group with more than one banking company
BKM404400: Surcharge allowance: group nominated company
BKM404500: Surcharge allowance: group allowance allocation statement
BKM404600: Surcharge allowance: group allowance allocation statement - time limits
BKM404650: Surcharge allowance: group allowance allocation statement - impact on time limit for submitting amended company return
BKM404700: Surcharge allowance: group allowance allocation statement - information required
BKM404750: Surcharge allowance: group allowance allocation statement - error in a group allowance allocation statement
BKM404800: Surcharge allowance: information to be included on banking company's tax return
BKM404850: Surcharge allowance: information to be included on banking company's tax return - excessive specification of available allowance
Close section
BKM405000: Collection and management
BKM405100: Collection and management: introduction
BKM405200: Collection and management: banking surcharge treated as amount of corporation tax
BKM405300: Collection and management: banking surcharge - information to include in company tax return
BKM405400: Collection and management: banking surcharge - information to be provided when payment is made
Close section
BKM406000: Targeted anti-avoidance rules
BKM406100: Targeted anti-avoidance rules: overview
BKM406200: Targeted anti-avoidance rules: meaning of arrangements
BKM406300: Targeted anti-avoidance rule: meaning of relevant transfer - surcharge profits
BKM406350: Targeted anti-avoidance rule: meaning of relevant transfer - CFC chargeable profits
BKM406400: Targeted anti-avoidance rule: meaning of non-banking company
BKM406450: Targeted anti-avoidance rule: meaning of deductible amount
BKM406500: Targeted anti-avoidance rule: meaning of significant
BKM406600: Targeted anti-avoidance rule: meaning of main purpose or one of the main purposes
BKM406700: Targeted anti-avoidance rule: the second CFC TAAR
BKM406800: Targeted anti-avoidance rule: anti-forestalling rule
BKM406900: Targeted anti-avoidance rule: Code of practice on taxation for banks and the TAAR
Close section
BKM407000: Double tax relief
BKM407100: Double tax relief - determining maximum double tax relief available
BKM407200: Double tax relief - determining maximum double tax relief available - example
Close section
BKM408000: Application to diverted profits
BKM408100: Application to diverted profits tax
BKM408200: Application to diverted profits tax: notional banking surcharge profits example
Close section
BKM409000: Commencement rules
BKM409100: Commencement rules
Close section
BKM500000: Code of Practice on Taxation for Banks: contents
Close section
BKM501000: Intoduction: contents
BKM501100: Background to the Code of Practice on Taxation for Banks
BKM501200: Code requirements
Close section
BKM502000: Code population: contents
BKM502100: Adopting the Code
BKM502200: Identifying banks in the Code population for the List of Non-Adopters
BKM502300: Deposit takers
BKM502400: Investment firms
BKM502500: Definition of Investment Bank
Close section
BKM503000: The Code commitments - governance: contents
BKM503100: Introduction
BKM503200: Governance
BKM503300: For a small bank
BKM503400: Application to overseas entities
BKM503500: Comply fully with all tax obligations
BKM503600: Application of the Code to actions taken by regulators
Close section
BKM504000: The Code commitments - tax planning: contents
BKM504050: Introduction
BKM504100: The “intentions of Parliament”
BKM504150: Background
BKM504200: Methodology
BKM504250: Supporting genuine commercial activity
BKM504300: Tax results for the bank
BKM504350: Are the tax consequences of the proposed transaction inconsistent with the underlying economic consequences?
BKM504400: The Legislation
BKM504450: Established Practice
BKM504500: Reasonable belief test
BKM504550: Code approaches
BKM504600: Is the transaction within the GAAR?
BKM504650: Technical challenge and legislative change
BKM504700: Purpose tests
BKM504750: Examples
BKM504800: Promotion
BKM504850: Remuneration packages and the meaning of “proper amounts of tax”
Close section
BKM505000: The Code commitments - relationship: contents
BKM505100: Introduction
BKM505200: Example
Close section
BKM506000: Governance protocol: contents
BKM506100: Introduction
BKM506200: Process for determining non-compliance
BKM506300: When a case will be escalated to HMRC directors
BKM506400: Rationale for not normally escalating single instances of tax planning
BKM506500: What is a potential GAAR transaction?
BKM506600: Revisiting the Code decision following GAAR counteraction
BKM506700: Role of the Independent Reviewer
BKM506800: Circumstances in which HMRC can override the Independent Reviewer
BKM506900: Impact of criminal investigation on escalation process
Close section
BKM507000: HMRC operation of the Code: contents
BKM507050: Adopting the code
BKM507100: Code approaches
BKM507150: HMRC response to code approach
BKM507200: Code Red decision
BKM507250: Code Green decision
BKM507300: The Code and DOTAS
BKM507350: Ensuring banks keep their Code commitments
BKM507400: Business risk review
BKM507450: Code compliance for banks dealt with outside Large Business
BKM507500: Potential tax planning issues identified during risk assessment
BKM507550: Governance
BKM507600: Tax planning
BKM507650: Relationship
BKM507700: Examples
Close section
BKM508000: The Annual Report: contents
BKM508100: FA14/S285
BKM508200: List of Adopters
BKM508300: List of Non-Adopters
BKM508400: Other information included in the Annual Report
Close section
BKM509000: Interaction of the Code with other measures: contents
BKM509100: Large Business tax strategy
BKM509200: Code and special measures
BKM509300: Code and Senior Accounting Officer regime
BKM509400: Enablers of tax avoidance
BKM509500: Corporate offences for failing to prevent criminal facilitation of tax evasion
BKM509600: Notification of uncertain tax treatments by large businesses
[18.97.9.172]
18.97.9.172