Report and Accounts
Please click on the below links for Unity Trust Bank’s Report & Accounts 2019 and Pillar 3 disclosures:
Please click on the below links for Unity Trust Bank’s Report & Accounts 2018 and Pillar 3 disclosures:
Taxation Transparency
As a socially responsible bank, Unity Trust Bank seeks to be transparent in all that we do and matters of taxation are no different.
Unity Trust Bank’s annual report and accounts show a slightly lower rate of corporation tax than would be implied by the current headline tax rate. This is because Unity Trust Bank has benefited from Community Investment Tax Relief (CITR) and claimed for Research and Development (‘R&D’) expenditure.
The CITR scheme encourages investment in disadvantaged communities by giving tax relief to investors who back businesses and other enterprises in less advantaged areas by investing in accredited Community Development Finance Institutions (CDFIs). Unity Trust Bank has made such investments, because we believe in the benefits they provide to the communities in which they operate. The tax relief is worth up to 25% of the value of the investment in the CDFI. The relief is spread over five years, starting with the year in which the investment is made.
Unity Trust Bank has claimed SME R&D tax relief in relation to advancements in technology. Relief has been provided for qualifying expenditure incurred during the year ended 31 December 2019. In addition, a claim was made during 2019, in respect of qualifying expenditure incurred during 2017 and 2018 tax years as permitted. This resulted in an adjustment in the tax charge in respect of prior periods. The relief can be claimed until there is a working prototype or activity ceases, and is received annually.
The tax relief we obtain is provided strictly in accordance with UK tax law and has been made available to encourage these activities.
| Current tax reconciliation | 2019 |
| £’000s | |
| Profit before tax | 9,076 |
| Tax on profit at standard UK rate of 19% | 1,724 |
| Adjusting items: | |
| Impact of capital allowances in excess of depreciation | (6) |
| IFRS 9 transitional adjustment | (6) |
| AFS transitional adjustment | (9) |
| Defined benefit pension adjustment | 10 |
| Community investment tax relief | (390) |
| R&D expenditure | (48) |
| Adjustment to tax charge in prior period | (241) |
| Expenses not deductible for tax purposes | 8 |
| Other | 2 |
| Current tax charge for the year | 1,044 |
| Effective current tax rate for the year | 11.50% |
Our trading address is Four Brindleyplace, Birmingham, B1 2JB.
Registered in England and Wales no. 1713124
