Corporation Tax Act 2010 section 269DD

Meaning of "relevant transferred-out gain" and "non-banking transferred-in gain"

Section 269DD defines two types of chargeable gain that are relevant when calculating the banking surcharge: gains transferred out of a banking company to a non-banking group member, and gains transferred into a banking company from a non-banking group member.

• A "relevant transferred-out gain" is a chargeable gain (or part of one) that a banking company transfers to a non-banking company within its group using an election to reallocate gains, and which would otherwise have accrued to the banking company in the accounting period.
• A "non-banking transferred-in gain" is a chargeable gain (or part of one) that is transferred into the banking company from a non-banking group company using an election to reallocate gains, and which accrues to the banking company in the accounting period as a result of that election.
• A "non-banking company" is any company that is not classified as a banking company at the time the chargeable gain (or the transferred part of it) is treated as accruing under the election.
• These definitions are used in calculating the surcharge on banking companies under section 269DA, ensuring that gains shifted between banking and non-banking group members are properly tracked for surcharge purposes.