Corporation Tax Act 2009 section 133E

Meaning of "banking company"

Section 133E defines what constitutes a "banking company" for the purposes of the restriction on deductions for compensation payments under section 133A.

• A company is a banking company if it is not an excluded company, is financially regulated (or would need to be if operating in the UK), carries on relevant regulated activities such as deposit-taking, and does so wholly or mainly as part of its trade — or if it is simply a building society
• The definition extends to companies that operate through partnerships, including limited liability partnerships and equivalent overseas entities, where the partnership itself meets the regulatory, activity, and trading conditions
• Companies operating outside the UK are caught if they would need to be authorised under UK financial services legislation were they carrying on their activities in the UK
• The relevant regulated activities that bring a company within scope include deposit-taking and, for investment banks, other specified financial activities — but the company must carry on those activities wholly or mainly in the course of trade