Corporation Tax Act 2009 section 133N

Powers to amend

Section 133N gives the Treasury broad regulation-making powers to amend the provisions restricting tax deductions for compensation payments by banking, insurance and other regulated companies (sections 133A to 133L), both to keep pace with changes in financial services regulation and to adjust the scope of the rules themselves.

• The Treasury can amend sections 133A to 133L by regulations whenever there are changes to the underlying financial services regulatory framework, including the Regulated Activities Order, the FCA Handbook, the PRA Handbook, or any EU or UK legislative requirement.
• The Treasury can also use regulations to widen or narrow the class of expenses caught by the restriction, add to the list of excluded expenses, amend the definitions of banking company, insurance company and related entities, and amend the corporate partner rules.
• Regulations that are purely consequential on regulatory changes, or that simply add new categories of excluded expenses, require only the negative Parliamentary procedure (annulment by the House of Commons), whereas all other changes require the affirmative procedure (prior approval by the House of Commons).
• The rules commenced on 8 July 2015 for companies and 15 July 2015 for firms with a corporate partner, with accounting periods straddling those dates apportioned on a just and reasonable basis.