Part 3: Banking Section 17 and and Schedule 3: Banking companies: surcharge Background note
This new chapter was announced for the first time at Summer Budget 2015.
	The chapter itself and the consequential amendments apply from 1 January 2016.
	Banks are now recovering from the financial crisis and this new bank corporation tax surcharge is being introduced alongside reductions in the bank levy rates. Together these measures will amend the way that banks contribute to public finances as their contributions will focus to a greater extent on their current year profitability levels.
	This Chapter will introduce an 8% surcharge on banks’ profits. Profits cannot be reduced by non-banking or pre-2016 carried-forward losses, or the surrender of group relief from non-banking companies or by elections which transfer chargeable gains to non-banking companies. Individual banking companies and groups containing banking companies will be entitled to a maximum £25,000,000 annual allowance against surcharge profits which will reduce the profits liable to the surcharge.