Part 3: Banking Section 17 and and Schedule 3: Banking companies: surcharge Details of the section and schedule Part 2: Consequential amendments
Paragraph 2 inserts a provision into section 59E of Taxes Management Act (TMA) 1970 so that the surcharge is due and payable as if it were corporation tax.
	Paragraph 3 inserts provisions into Schedule 18 to Finance Act 1998 so that returns are made of the surcharge as if it were corporation tax.
	Paragraphs 4 to 6 integrate Chapter 4 with the rest of CTA 2010.
	Paragraphs 7 to 10 amend Part 9A of Taxation (International and Other Provisions) Act (TIOPA) 2010 by inserting new sections 371BI and 371UBA.
	New section 371BI increases the appropriate rate at which corporation tax should be charged on a CFC's chargeable profits to include the surcharge rate, and this rate applies after any surcharge allowance which the chargeable company has specified in its company tax return has been taken into account. This section also contains two provisions to counter arrangements that seek to avoid or reduce the surcharge. The first provision is similar to section 269DN CTA 2010. (See paragraphs 27 and 28 of this note). The second provision applies where the relevant interest in a CFC is moved from a banking company to a non-banking company and where there are arrangements where the main purpose, or one of the main purposes of the arrangements, is to avoid or reduce the sum charged under the surcharge.
	New section 371UBA contains provisions similar to section 269DM CTA 2010, and requires the chargeable company or the responsible company under relevant group payment arrangements to inform an officer of HMRC, on or before the date of a payment, of amounts of surcharge included in the payment.
	Paragraphs 11 to 13 amend Part 3 of Finance Act 2015 so that the rate specified in relation to diverted profits is increased by the surcharge to 33%. Definitions of adjusted and notional adjusted ring fence profits and effective tax mismatch outcome are amended to include banking surcharge profits.