Commentary

D7.714 Administration of the bank surcharge

Corporate tax
Corporate tax | Commentary

D7.714 Administration of the bank surcharge

Corporate tax | Commentary

D7.714 Administration of the bank surcharge

In general, the bank surcharge is treated for all purposes of the Taxes Acts as if it were corporation tax1 with the exception of the shadow ACT rules (Division D5.1); any references to corporation tax and profits chargeable to corporation tax in the shadow ACT regulations2 does not include the banking surcharge or surcharge profits3.

The bank surcharge is payable on the usual corporation tax due date for a company4, although it is ignored for calculating any instalments (D1.1328) due and payable before 1 January 2016. Instead, the increase in any instalments that would otherwise have been payable before 1 January 2016, are payable in the first instalment due after 1 January 20165.

Relief for foreign tax is available against the surcharge but only after offset against other corporation tax payable by the banking company6. Foreign tax arising either to a non-banking company or before 1 January 2016 is not able to be set off against the surcharge7.

When a payment of the banking surcharge is made, notification must be given to HMRC by the relevant company on or before the date of the payment. Failure to provide this notification incurs the standard penalty for failing to comply with an information notice (A4.572)8. Similar provisions apply

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