Regulation 7 Insertion of regulation 5B

After regulation 5A (instalment payments – ring fence profits and adjusted ring fence profits) insert—

“Instalment payments – the bank levy – anti-avoidance

5B.

(1)

Paragraphs (3) and (4) apply if on or after 31st March 2011 there is a relevant amendment—

(a)

in relation to the accounting period of an entity (E) which is the chargeable member; or

(b)

in relation to the accounting periods of E and any other chargeable member; and

as a consequence of the relevant amendment there is no chargeable member which meets, or would meet, the requirements of paragraph 54(3) or (5) of Schedule 19 (meaning of the responsible member) at the end of the chargeable period.

(2)

In relation to E and, where relevant, any other chargeable member a relevant amendment is an alteration to—

(a)

the ending of an accounting period, as a result of an event referred to in section 10 (end of accounting period) or section 12 (companies being wound up) of CTA 2009^f1; or

(b)

the commencement of an accounting period, as a result of an event referred to in section 9 (beginning of an accounting period) or section 12(5) of CTA 2009;

the main purpose, or one of the main purposes, of which is to obtain a tax advantage.

(3)

Where this paragraph applies for the purposes of ascertaining the dates on which instalment payments are treated as becoming due and payable in accordance with regulation 5(3), the applicable accounting period of the entity that is the responsible member in relation to the chargeable period is to be treated as beginning and ending on the dates on which the chargeable period begins and ends (“the assumption”).

(4)

Where paragraph (3) applies, the assumption will apply in relation to any applicable accounting periods that relate to a subsequent chargeable period where there is no chargeable member which meets the requirements of paragraph 54(3) or (5) of Schedule 19.

(5)

In this regulation—

• “tax advantage” has the same meaning as in section 1139 of CTA 2010; and

• “the chargeable member” has the meaning given by paragraph 54(2) of Schedule 19^f2.”.