Corporation Tax Act 2010 section 269DL

Application of enactments applying to corporation tax: assessment, recovery, double taxation etc.

Section 269DL explains how the banking surcharge interacts with wider corporation tax legislation, confirming that most existing corporation tax rules also apply to the surcharge, and sets out specific restrictions on the use of foreign tax credits against the surcharge.

• All general corporation tax enactments — covering returns, assessments, collection, appeals, penalties, interest and insolvency priorities — also apply to the banking surcharge, subject to any necessary modifications
• The rules on unrelieved surplus advance corporation tax (the 1999 Regulations and any further regulations under FA 1998 s 32) do not extend to the surcharge: references to corporation tax in those regulations exclude the surcharge, and references to profits charged to corporation tax exclude surcharge profits
• Double taxation relief (Part 2 of TIOPA 2010) applies to the surcharge, but foreign tax credits that arose in periods when the company was not a banking company, or in periods ending before 1 January 2016, cannot be set against the surcharge
• Where a foreign tax credit is available against both corporation tax and the surcharge for the same period, it must be set against the corporation tax first, with only any remaining balance then available to reduce the surcharge

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