CFM71010 | Other tax rules on corporate finance: banks

Banks: general

A bank will generally have a loan relationship whenever it is a creditor or debtor for a money debt. This will include gilts, bonds, mortgage loans and deposits.

The loan relationship and derivative contract rules apply to banks in the same way as they do to other companies.

Making loans and advances is an integral part of a bank’s trade (see BIM40805 for details of what is meant by ‘integral part of the trade’) and so the bank will invariably have trading loan relationships as a creditor.

See CFM14000+ for the definition of a bank and an introduction to the regulatory rules that apply to banks

See CFM71030 for the treatment of dormant accounts by banks

See CFM75000+ for the tax deduction rules to be applied by banks

See the Bank Levy Manual for guidance on the bank levy rules

See the Banking Manual for guidance on bank surcharge, bank loss restriction and the restriction on relief for compensation paid by banks.