BKM404200 | Banking surcharge: surcharge allowance: banking company not in a group or only banking company in a group

CTA10/S269DJ

A banking company which is not in a group containing other banking companies for any part of its chargeable accounting period has a maximum available surcharge allowance of £100m. Prior to 1 April 2023, the surcharge allowance was £25m. For accounting periods of less than 12 months the amount is proportionally reduced.

Example

• Company A has an accounting period 1 April 2016 to 31 March 2017

• Company A is one of two banking companies in Group X

• Company A leaves Group X on 31 October 2016 and joins Group Y on the same day.

• Company A is the only banking company in Group Y

• Company A is still a member of Group Y at 31 December 2017.

• Groups X and Y both make their accounts up to 31 December.

For the purposes of the banking surcharge Company A is a member of Group Y for the whole of its accounting period ended on 31 March 2017 as it is included in the consolidated financial statements of Group Y at 31 December 2016 and 31 December 2017 (BKM402900). As Company A is the only banking company in Group Y it is entitled to the maximum available surcharge allowance of £25m.