BKM402375 - Banking surcharge: definition of banking company: deposit taker condition 바카라 사이트� de minimis exclusion

CTA10/S269DO (3)-(5), (7)

The de minimis exclusion applies where deposits represent only a small part of the entity바카라 사이트檚 balance sheet and if the entity is a member of a group, where it is the only UK deposit taker.

For most retail banks, customer deposits represent a considerable proportion of the bank바카라 사이트檚 balance sheet liabilities. This applies both to UK retail banks and to foreign banks trading in the UK through a permanent establishment. From time to time the list of banks authorised to accept deposits under FSMA 2000 may include an entity where deposit taking represents only a small part of its balance sheet liabilities, these entities will be excluded from the surcharge if:

  • in the chargeable accounting period, liabilities on the entity바카라 사이트檚 balance sheet which come from accepting deposits do not amount to a substantial proportion of its total liabilities and equity, and
  • where the company is a member of a group, no other member of the group is a UK deposit taker in the chargeable accounting period

In practice, HMRC will accept the first part of the test is met where liabilities from accepting deposits represent less than 10% of the entity바카라 사이트檚 total liabilities and equity in the chargeable accounting period (the deposit ratio test).

The test should be applied at the balance sheet date and should be based on a 2-year rolling average. The test is only breached if a company has deposits of more than 10% of the entity바카라 사이트檚 total liabilities and equity in the chargeable accounting period and the previous accounting period.

Where the authorised deposit taker is a foreign company trading in the UK through a permanent establishment, the deposit ratio test must be applied to the foreign company바카라 사이트檚 balance sheet. In such a case, references to accepting deposits are references to carrying on an activity which would be a regulated activity of accepting deposits under FSMA 2000 if it were carried on in the UK.

The second part of the test refers to a UK deposit taker, for the purpose of the test a UK deposit taker is:

  • a UK resident company that accepts deposits, or
  • a non-UK resident company that accepts deposits in the course of carrying on a trade in the United Kingdom through a permanent establishment in the United Kingdom.