Commentary

D7.712 Overview

Corporate tax
Corporate tax | Commentary

D7.712 Overview

Corporate tax | Commentary

Bank surcharge

D7.712 Overview

The bank surcharge was introduced with effect from 1 January 20161. In outline the regime works as follows:

  1.  

    •     an eight per cent surcharge is levied on a banking company's 'surcharge' profit for the year. This profit can't be reduced by non-banking losses, pre-January 2016 carried forward losses or group relief from non-banking group companies

  2.  

    •     each banking company (or group of companies) is entitled to a £25m annual allowance against the surcharge (surcharge allowance), which effectively reduces the profits liable to the surcharge

Where a company's accounting period straddles 1 January 2016 it is split

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