BKM404700 - Banking surcharge: surcharge allowance: group allowance allocation statement – information required

CTA10/S269DI

The group allowance allocation statement and any revisions made to that statement must include:

  • group name
  • accounting period of the nominated company to which the statement relates
  • a statement that the company was the nominated company throughout that accounting period and if it was not, the number of days during that period when it was the nominated company
  • the group surcharge allowance the group has for this accounting period
  • list of the banking companies in the group during this accounting period
  • the amounts of group surcharge allowance allocated to each of the listed banking companies
  • for each amount of group surcharge allowance allocated to a listed banking company, the chargeable accounting period of the listed banking company to which it relates

Example involving banking companies with different accounting periods:

Group ABC plc has 3 banking companies. All 3 companies are members of the group at 31 December 2018 and 31 December 2019. The group decides the allowance should be allocated equally between the three companies even though Company C is only a banking company for part of the nominated company’s accounting period.

Company A is the nominated company and its accounting period is 1 January 2018 to 31 December 2018.

Company B’s year end is 30 September.

Company C has a year end of 31 March and the first accounting period for which it is a banking company is the year ended 31 March 2019.

The information to be included in the group allocation statement would be:

  • Group ABC plc
  • 1 January 2018 to 31 December 2018
  • Company A was the nominated company throughout this accounting period
  • Total group surcharge allowance £25,000,000
  • Company A, Company B, Company C
  • Company A £8,333,333 for the period 1 January 2018 to 31 December 2018
  • Company B £6,232,876 for the period 1 January 2018 to 30 September 2018 (273/365 x £8,333,333)
  • Company B £2,100,457 for the period 1 October 2018 to 31 December 2018 (92/365 x £8,333,333)
  • Company C £8,333,333 for the period 1 April 2018 to 31 December 2018

The total allowance allocated must never exceed the £25m and will be proportionately less where the nominated company’s accounting period is less than 12 months.

The allowance allocated to any one of the listed banking companies must never exceed the group’s total allowance for an accounting period. (CTA10/s269DI(6))

If a listed company’s chargeable accounting period is different from that of the nominated company, the maximum allocation to that company is restricted to the overlap period on a time apportionment basis. So, if in the example above only Company C had any surcharge profits in the period to 31 December 2018, the maximum surcharge allowance that could be allocated is £25m x 275/365.

See BKM404750 for guidance on action to take where, at the time of submitting the statement or any later time, the total allowance allocated exceeds £25m or the proportionately lower figure where the nominated company’s accounting period is less than 12 months.

See BKM404850 for guidance on action to take where, at the time of submitting the statement or any later time, the allowance allocated to one of the listed banking companies exceeds the total allowance for the accounting period or the proportionately lower figure where the listed company’s accounting period differs from that of the nominated company.

See BKM404650 for guidance on how the submission of a group allowance allocation statement or revised group allowance allocation statement affects the time limits for amending a company tax return.