Consultation on restricting tax relief for banks' compensation expenditure

Compensation payments associated with banks’ misconduct and misselling have had a significant impact on UK corporation tax receipts post-crisis.

The government does not believe that this is sustainable and, at Budget 2015, the Chancellor announced the intention to make banks’ future compensation payments non-deductible for corporation tax purposes.

This consultation considers the detailed design of the measure ahead of legislation in a future Finance Bill.