Corporation Tax Act 2010 section 269DE

Surcharge allowance for banking company in a group containing other banking companies

Section 269DE sets out how the surcharge allowance is determined for a banking company that belongs to a group containing one or more other banking companies.

• Where a banking company is in a group with other banking companies, the group must share a single £25,000,000 surcharge allowance, with each company specifying its own share in its company tax return
• A banking company's available surcharge allowance is the sum of any group surcharge allowance allocated to it plus its non-group surcharge allowance (for days it was not in a group with another banking company), subject to a £25,000,000 cap
• Both the non-group surcharge allowance and the £25,000,000 cap are proportionally reduced if the accounting period is shorter than 12 months
• The total surcharge allowance a company claims in its tax return, together with any surcharge allowance used against controlled foreign company (CFC) apportioned profits, must not exceed the company's available surcharge allowance