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.
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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.