Taxation (International and Other Provisions) Act 2010 section 371UBA

Payments in respect of a charge on a banking company: information to be provided

Section 371UBA requires banking companies (or the company responsible for paying tax on their behalf under group payment arrangements) to notify HMRC in writing about payments made in respect of a CFC charge, specifically identifying how much of each payment relates to the banking surcharge element.

• When a banking company incurs a CFC charge, and a payment is made (by any party) that wholly or partly covers that charge, HMRC must be notified in writing of the surcharge amount included in the payment.
• The notification must be made on or before the date the payment is made, and must state the amount of the payment that relates to the CFC charge on the banking company.
• The "responsible company" that must give the notification is either the company handling group payment arrangements for the chargeable company's corporation tax, or, if no such arrangements exist, the chargeable company itself.
• Failure to comply with the notification requirement is treated as a failure to comply with a formal HMRC information notice, meaning penalties may be imposed under the information and inspection powers regime.