Restriction on brought forward reliefs in the UK banking sector - technical note
This technical note provides the detail as to how the proposed legislation will operate.
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Details
On 3 December 2014 the Chancellor of the Exchequer announced that the government will introduce legislation in the Finance Bill 2015, which will restrict the proportion of banks鈥� annual taxable profit that can be offset by certain carried forward reliefs to 50%. The restriction will apply to carried forward of trading losses, non-trading loan relationship deficits, and management expenses. The restriction will take effect from 1 April 2015 and will only apply to relevant reliefs accruing prior to this date.
Updates to this page
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This technical note has been updated to reflect changes to the legislation following technical consultation. The new chapter 8 covers an allowance for building societies and their groups, and chapter 9 now deals with the targeted anti-avoidance rule and provides details of the addition of a motive test.
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First published.