Policy paper

Restricting tax relief for banks' compensation payments

This measure affects tax relief on compensation payments paid by banks and building societies within the charge to UK corporation tax.

• From: HM Treasury
• Published: 8 July 2015

Documents

Restricting tax relief for banks' compensation payments

PDF, 667 KB, 20 pages

View online

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email digital.communications@hmtreasury.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Details

This measure will ensure that corporation tax receipts are not affected by large compensation payments made in relation to banks’ past misconduct and management failures, ensuring that the sector makes an appropriate contribution to restoring the public finances. This measure applies to compensation expenditure arising after on or after 8 July 2015. Customers with an accounting period straddling the commencement date are required to apportion expenses between the pre- and post- commencement periods on a just and reasonable basis.

Published 8 July 2015