BKM409100 - Banking surcharge: commencement rules

F(No2)A15/Schedule 3, Part 3

The provisions in respect of the surcharge apply for accounting periods beginning on or after 1 January 2016.

If a banking company, CFC or diverted profits company has an accounting period that straddles this date, this is to be split into two separate deemed accounting periods - one ending on 31 December 2015 and one commencing on 1 January 2016.

For a banking company or CFC, the profit or loss of the straddling period is apportioned to the two separate accounting periods on a time basis or if that produces an unjust or unreasonable result, on a just and reasonable basis. For a company subject to diverted profits tax, the apportionment is on a just and reasonable basis.

Any quarterly instalment payments becoming due and payable before the commencement date are treated as being due and payable on the first instalment date after the commencement date.