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Definition of bank

Banks that operate in the UK must be recognised by the Bank of England, whether they are resident or non-resident for tax purposes; the determination of residence is dealt with in D4.103.

In general, the term 'bank' refers to the carrying on of a bona fide banking business¹. Under statute², however, a bank is defined for specific purposes only as meaning:

1. Ìý

   •ÌýÌýÌýÌý the Bank of England

2. Ìý

   •ÌýÌýÌýÌý a person who has permission under Financial Services and Markets Act 2000, Pt IV to accept deposits (excluding building and friendly societies, credit unions and insurance companies)

3. Ìý

   •ÌýÌýÌýÌý prior to IP completion day (ie 11pm on 31 December 2020), an EEA firm within FSMA 2000, Sch 3, Pt I, para 5(b) which has permission under para 15 of that Schedule (as a result of qualifying for authorisation under para 12(1)) to accept deposits. Post IP completion day, such firms do not meet the definition of a bank unless they qualify for authorisation