UK tax forms

Banking

Overview

This section is designed to analyse tax relevant information relating to a Banking trade. There are two different sets of measures introduced to regulate additional tax obligations of banking companies. Both of those, Bank levy and Surcharge on banking companies are described below. Please note that all functionalities and sheets in this article are available for companies with at least one banking business inserted.

Bank Levy

Banking companies are subject to a levy on total aggregated liabilities and equity excluding some specific debts, deposit and the first £20 billion of any bank’s taxable debts. The following sheets support the calculation of this tax. Companies subject to the Bank levy have additional obligations reflected in Tax calculations and Tax payments and interest sheets.
Bank levy payable
Use this sheet to analyse the Bank levy that is chargeable in each Accounting period. This sheet is optional.
Bank levy
Use this sheet to input banking business balance sheet data relevant to the calculation of due bank levy amount. This sheet will be developed automatically together with the
Bank levy payable
 sheet.
Bank levy aggregation
This sheet is relevant only to foreign entities. This is determined in the
Type
dropdown on the
Bank levy
sheet. Use this sheet to input foreign banking business balance sheet data, broken down into individual entities. This sheet is optional.
Bank levy branch allocation
This sheet is relevant only to Foreign entities. This is determined in the
Type
dropdown on the
Bank levy
sheet. Use this sheet to input additional banking business balance sheet data from companies’ branches. This sheet is optional.

Completing the Sheets

Bank levy Payable
This is a summary sheet that automatically provides a breakdown of bank levy chargeable in all inserted Accounting periods. It is possible here to input Double tax relief figures relevant to each period and specify bank Levy amounts that are chargeable in later periods.
note
On this sheet It is possible to manually override automatically calculated start and end dates of chargeable periods for the purpose of bank levy calculation.
Bank levy
This sheet is completed manually. You can specify the type of banking business in the dropdown at the top of the sheet. For all foreign types of banking business, you can choose to link values from developed Bank Levy Aggregation sheet. Bank Levy is calculated based on the input balance sheet data and bank levy rates which are available in the table at the bottom of the sheet.
note
On this sheet It is possible to manually override the amount of High-quality net liquid assets (HQLA), that forms a part of the bank levy calculation.
Bank levy aggregation
This sheet is completed manually. You can input
Foreign banking business balance sheet
 information broken down to individual entities. Values from this will automatically link to the Bank Levy sheet where chargeable bank levy is calculated.
Bank levy branch allocation
This sheet is completed manually. You can input
Foreign banking business balance sheet information
 broken down to individual branches of your banking business. The calculated proportion of bank equity that is subject to UK bank levy is linked to the Bank Levy sheet where it is added to main bank levy calculation.

Surcharge on Banking Companies

Banking companies are subject to an additional surcharge on their profits. Relevant profits will be calculated on the same basis as for Corporate tax, but with some reliefs added back and with available surcharge allowance that can be utilised. The amount of surcharge due by the company will be reflected on the Tax calculations schedules. The following sheets support the calculation of the surcharge on banking companies.
Surcharge on banking companies
Use this sheet to analyse all elements of the calculated surcharge on banking companies. This sheet is optional.
Pre 2016 / Non banking losses
Use this sheet to calculate pre-2016 or non-banking loss relief that forms a part of the surcharge profits calculation on the Surcharge on banking companies sheet. This sheet is developed automatically together with Surcharge on banking companies.
Surcharge and allowance limit
This is a review only sheet with information on rates and thresholds applicable to the calculation of surcharge on banking companies. On this sheet the final figure of due surcharge on banking companies is calculated and you can make a manual adjustment for Double tax relief. This sheet is developed automatically together with Surcharge on banking companies

Completing the Sheets

Surcharge on banking companies
This is a sheet that calculates surcharge profits starting with total taxable profits in the period and adjusting it with all eligible reliefs, losses and transfers. The non-banking or pre 2016 loss relief amount is calculated on the Pre 2016 / Non banking losses sheet and linked here, while other items can be added manually. This sheet also lets you specify the amount of utilised surcharge allowance. Both profits and allowance amounts are used in the calculation of excess surcharge profits which is linked to the
Surcharge and allowance limit
 sheet for the final surcharge calculation. Columns will be added here for each inserted Accounting period.
note
It is possible here to specify the number of days in the period on which the company is not a member of a group that has another member that is a bank company. This impacts the available amount of surcharge allowance in the period.
Pre 2016 / Non banking losses
This sheet calculates the non-banking or pre 2016 loss relief amount. Relevant data can be entered manually or is linked from the Loss summary sheet. A column will be added here automatically linking non-trade losses that are required by the calculation. The non-banking or pre 2016 loss relief amount is a sum of all types of losses in the calculation deducted in determining taxable total profits and post 2016 losses included in this offset. Rows will be added here for each inserted Accounting period.
Surcharge and allowance limit
This sheet displays information on the surcharge rate and surcharge allowance limits. The amount of excess surcharge profits is linked here from the Surcharge on banking companies sheet for the purpose of calculating the surcharge on banking companies due in each Accounting period. Rows will be added here for each inserted accounting period.
note
It is possible to override the linked amount of excess surcharge profits here. This affects the final due amount of calculated surcharge.

This article applies to:

  • PRODUCT: ONESOURCE Corporate Tax