BKM403400 | Banking surcharge: calculation of surcharge profits: non-banking group relief

CTA10/S269DB

The banking surcharge seeks to charge the profits of banking companies therefore any relief from non-banking companies in the group which is reflected in the bank’s taxable total profits is added back. This is so the relief from non-banking activities does not reduce the profits on which the surcharge is calculated. The amount added back is the non-banking group relief.

Non-banking group relief is group relief surrendered by a company which is not a banking company or an EEA banking company in the surrender period. (Chapter 3 of Part 5 of CTA10 allows a non-UK resident company that is resident or trading in the EEA to surrender losses and other amounts it has in an accounting period.)