The Taxation of Banks (Amendments to the Corporation Tax Act 2009, Corporation Tax Act 2010 and Finance Act 2011) Regulations 2022
This tax information and impact note is about draft legislative changes to the bank-specific taxes.
Documents
Details
These regulations will amend the definitions used in the bank-specific taxes, which are:
- the Bank Levy
- the bank Corporation Tax surcharge
- the Code of Practice on Taxation for Banks
- the bank loss relief restriction
- the restriction on tax relief for banks’ compensation payments
The current definitions rely on terms used by the Financial Conduct Authority (FCA) in their FCA Handbook. The FCA Handbook is changing with the introduction of the FCA’s new Investment Firms Prudential Regime, and so the definitions in the bank-specific taxes need to be updated to take these changes into account.
The regulations also make changes to the definitions to reflect regulated activities that have become regulated by the FCA since the introduction of the bank-specific taxes.
The government opened a technical consultation on 30 November 2021 on draft regulations which will amend definitions in the bank-specific tax rules.