BKM405200 - Banking surcharge: collection and management: banking surcharge treated as amount of corporation tax
CTA10/S269DL
As set out in CTA10/S269DA(1) the banking surcharge is to be charged on a banking company as if were an amount of corporation tax chargeable on the company. This provision applies to all enactments applying generally to corporation tax including:
- those relating to returns of information and the supply of accounts, statements and reports
- those relating to the assessing, collecting and receiving of corporation tax
- those conferring or regulating a right of appeal and
- those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom.
Although the surcharge is treated as if it were an amount of corporation tax, this deeming does not extend to the treatment of unrelieved surplus advance corporation tax under FA98/S32.
Double taxation relief (DTR) can be claimed against amounts of surcharge but only where the credit arises after the claimant company became a banking company. Any credit for foreign tax is to be given firstly again the corporation tax for the period and any remaining amounts are allowed against the surcharge. See BKM407200 for an example of how to calculate DTR for a banking company