Corporation Tax Act 2010 section 269DA

Surcharge on banking companies

Section 269DA imposes an additional 3% surcharge on the profits of banking companies that exceed a specified surcharge allowance, charged as if it were corporation tax.

• Banking companies face a 3% surcharge on surcharge profits exceeding their surcharge allowance for each accounting period, treated as corporation tax.
• Surcharge profits are calculated by taking taxable total profits and adding back certain non-banking reliefs and transferred-out gains, then deducting non-banking transferred-in gains and R&D expenditure credits.
• Where a banking company belongs to a group containing one or more other banking companies, the surcharge allowance is determined under section 269DE (shared allowance rules).
• Where a banking company is not part of a group with other banking companies, the surcharge allowance is determined under section 269DJ (standalone allowance rules).