Corporation Tax Act 2010 section 269BC

Banking companies: supplementary definitions

Section 269BC provides supplementary definitions of key terms used in the provisions that determine whether a company is a "banking company" for the purposes of the banking surcharge and the restriction on banks' use of carried-forward losses.

• "Asset management activities" covers operating collective investment schemes, acting as a discretionary investment manager for unconnected clients, and acting as an authorised corporate director — these activities can help determine whether a company falls outside the banking company definition.
• A "linked entity" is broadly a group member, a company in which a group member holds a major interest, or a partnership in which a group member holds at least a 40% share of profits or losses — discretionary investment management for linked entities does not count as asset management activities.
• Many technical terms (such as "discretionary investment manager", "retail client", "financial instrument" and "investment firm") take their meanings from either the PRA Rulebook or the FCA Handbook, depending on whether the entity in question is PRA-authorised or not.
• A company or partnership that would qualify as an FCA investment firm meeting the relevant conditions based on its UK activities is treated as one even if its registered office or head office is outside the United Kingdom.