Corporation Tax Act 2010 section 269B

Meaning of "banking company"

Section 269B defines which companies count as a "banking company" for the purposes of the special corporation tax rules that apply to banks, by setting out five conditions (A to E) that must be met, and also covers building societies and partnerships.

• A banking company is one that meets all five conditions (A to E), or meets conditions A and B while being a member of a partnership that meets conditions C to E, or is a building society
• The company must be UK resident or trading in the UK through a permanent establishment (condition A), must not be an excluded entity (condition B), and must be authorised under financial services legislation (condition C)
• The company or partnership must carry on relevant regulated activities — either accepting deposits or, if it is an investment bank, carrying on specified investment activities wholly or mainly in the course of trade (conditions D and E)
• An investment bank for these purposes is an FCA investment firm with a permanent minimum capital requirement of at least £750,000 (ignoring transitional provisions) that is not a limited activity firm, limited licence firm, local firm, or matched principal trading firm, or a firm designated by the Prudential Regulation Authority