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2 min readWarningBank of England banking taxonomy 4.1.1Updated 11 November 2026

Capital adequacy - memorandum items (CA4): a total must equal the sum of its parts (C04.00.01.01, CP04.00.04.01, SC04.00.01.01, Bank of England check v0224_m)

A warning on the capital adequacy - memorandum items (CA4) (C04.00.01.01), memorandum Items (CA4) (CP04.00.04.01) and memorandum items for SDDTs (CA4 SDDT) (SC04.00.01.01) templates, in the own funds (PRA001), capital+ actuals and forecasts (PRA112) and own funds for SDDTs (PRA116) returns.

Line4 Check runs it on the own funds (PRA001), capital+ actuals and forecasts (PRA112) and own funds for SDDTs (PRA116) returns, proven on test files, check by check: the same outcome on all 14 test files of those returns.

Check your file for this ruleWhat to do if it fails

The rule in plain words

In column "Amount" (0010) of Capital adequacy - memorandum items (CA4) (C04.00.01.01): "Total deferred tax liabilities" (row 0050) must equal the sum of "Deferred tax liabilities non deductible from deferred tax assets that rely on future profitability" (row 0060) and "Deferred tax liabilities deductible from deferred tax assets that rely on future profitability" (row 0070).

The headline gives only the template and the kind of check, because the rule is too long to say in a headline. The plain words above say all of it.

What to do if your return fails it

  1. 01Open the tables below and find the cells the rule reads.
  2. 02Add up the parts in your return and compare the result with the total.
  3. 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
  4. 04The Bank of England allows a small rounding difference, worked out from the decimals each value is reported with.
  5. 05It runs only when your filing indicators mark C04.00.01 as reported.
  6. 06This is a warning. It does not stop the return on its own, but your supervisor may ask you to explain it.

The cells it reads

Capital adequacy - memorandum items (CA4) (C04.00.01.01)

Rows

  • R0050Total deferred tax liabilities
  • R0060Deferred tax liabilities non deductible from deferred tax assets that rely on future profitability
  • R0070Deferred tax liabilities deductible from deferred tax assets that rely on future profitability

Column

  • C0010Amount

Memorandum Items (CA4) (CP04.00.04.01)

Rows

  • R0050Total deferred tax liabilities
  • R0060Deferred tax liabilities non deductible from deferred tax assets that rely on future profitability
  • R0070Deferred tax liabilities deductible from deferred tax assets that rely on future profitability

Column

  • C0010Current reporting month

Memorandum items for SDDTs (CA4 SDDT) (SC04.00.01.01)

Rows

  • R0050Total deferred tax liabilities
  • R0060Deferred tax liabilities non deductible from deferred tax assets that rely on future profitability
  • R0070Deferred tax liabilities deductible from deferred tax assets that rely on future profitability

Column

  • C0010Amount

A worked example

With simple numbers.

Illustrative values
Deferred tax liabilities non deductible from deferred tax assets that rely on future profitability1,200
Deferred tax liabilities deductible from deferred tax assets that rely on future profitability800
Together2,000
What the rule then expects

Total deferred tax liabilities must then be 2,000.

2,000Passes
2,100Fails

A file that reports 2,000 passes. One that reports 2,100 fails, by 100.

The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.

Which returns it applies to

Line4 Check runs it on the own funds (PRA001), capital+ actuals and forecasts (PRA112) and own funds for SDDTs (PRA116) returns on Bank of England banking taxonomy 4.1.1. The Bank of England applies it to own funds for SDDTs (PRA116), own funds (PRA001) and capital+ actuals and forecasts (PRA112) returns, as a warning.

The Bank’s own words and formula

The plain words above spell out the Bank’s formula, with each cell named from its templates. In the Bank of England’s list of validations, word for word:

v0224_m: [C04.00.01.01] {r0050, c0010} = {r0060, c0010} + {r0070, c0010}
Show the formulaShow

The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.

{t: C04.00.01.01, r: 0050, c: 0010} = {t: C04.00.01.01, r: 0060, c: 0010} + {t: C04.00.01.01, r: 0070, c: 0010}

Every PRA banking rule on C04.00.01.01

Checks like this one, run at the point of submission, are the first step to real-time supervision. Line4 builds SupTech software for financial regulators that runs checks like these as each return arrives.