BKM101100 - Introduction

Banks and building societies are subject to a number of specific taxes. This manual covers those bank specific taxes.  By way of introduction, these specific taxes are set out as follows.

First, banks are subject to the compensation restriction rules in CTA09/S133A.  This denies banks and building societies corporation tax relief for compensation payments related to misconduct issues. (BKM200000+)

Secondly, the bank loss restriction in CTA10/PT7A/CH3 restricts the amount of certain carried-forward reliefs that banks can use. (BKM300000+)

Thirdly, the banking surcharge in CTA10/PT7A/CH4 brings in a surcharge on the profits of banking companies. (BKM400000+)

Each of the above regimes has been allotted a separate chapter in the manual, where it is explored in detail.

This introductory chapter also contains information on Statement of Practice 4/96 (BKM102000).

For information on other areas of taxation that affect banks and building societies see BKM101200.

Bank Levy

This manual does not include information on the bank levy, which is currently included in the Bank Levy Manual.