BKLM443000 | Collection and management: responsible member for groups: determined by the legislation

For chargeable periods ending prior to 1 January 2021

Paragraph 54 (3) and (4) of Schedule 19

Where there is no nomination for a chargeable period or where the requirements of paragraph 54(3) for nomination are not met, the legislation determines who the responsible member will be for that chargeable period.

For UK banking groups or building society groups the parent entity will become the responsible member, providing that it is a chargeable member of the relevant group (see BKLM433000).

Paragraph 54(5) and (6) of Schedule 19

For foreign banking groups and relevant non-banking groups the responsible member will be the entity that:

• is a chargeable member of the relevant group (see BKLM433000) at the end of the chargeable period

• has an accounting period that starts and ends on the same days as the chargeable period, and which

• has the largest amount of chargeable equity and liabilities whether Type A chargeable equity and liabilities (i.e. that is the parent of the largest relevant UK sub-group or relevant UK banking sub-group) or Type B, C or D chargeable equity and liabilities in that chargeable period.

If no entity satisfies the conditions of either paragraph 54(3), or 54(4) or (5) for a chargeable period then paragraph 54(7) allows HMRC to determine the responsible member (see BKLM444000) for that period.

For chargeable periods ending on or after 1 January 2021

For foreign banking groups and relevant non-banking groups the responsible member will be the entity that:

• is a chargeable member of the relevant group (see BKLM433000) at the end of the chargeable period

• has an accounting period that starts and ends on the same days as the chargeable period, and which has the largest amount of UK-based equity and liabilities or UK-allocated equity and liabilities.

If this entity is part of a UK sub-group, the responsible member will be the parent of that sub-group.