Finance Act 2022

6 Rate of surcharge and surcharge allowance

(1) In section 269DA(1) of CTA 2010 (surcharge on banking companies), for “8%” substitute “3%”.

(2) In each of the following provisions of Part 7A of CTA 2010 (which make provision in relation to the surcharge allowance), for “£25,000,000” substitute “£100,000,000”—

(a) section 269DE(3) and (4),

(b) section 269DF(2) and (3), and

(c) section 269DJ(3).

(3) The amendments made by this section have effect for accounting periods beginning on or after 1 April 2023.

(4) The remaining provisions of this section deal with a case where a company has an accounting period (a “straddling period”) beginning before 1 April 2023 and ending on or after that date.

(5) For the purpose of calculating—

(a) the amount of surcharge chargeable on a company for the straddling period, and

(b) the sum chargeable on a company at step 5 in section 371BC(1) of TIOPA 2010 (and see, in particular, section 371BI of that Act) for the straddling period,

so much of the straddling period as falls before 1 April 2023, and so much of it as falls on or after that date, are to be treated as separate accounting periods.

(6) If it is necessary to apportion an amount for the straddling period to the two separate accounting periods, see section 1172 of CTA 2010 (which applies as a result of section 269DL of CTA 2010).