Part 3: Banking Section 18: Banking companies: expenses relating to compensation Details of the section Section 133B
New section 133B provides that companies with expenses disallowed under section 133A must also take into account a notional receipt in the same period as that in which the expenses are disallowed. This provision ensures that a charge equivalent to the administrative and other costs associated with making the compensation is taken into account in calculating taxable profits.
	Subsection (1) sets out the application of the section.
	Subsection (2) confirms that the amount of the receipt to be taken into account is 10% of the expenses disallowed by new section 133A. This amount is to be brought into account as a trade receipt.
	Subsections (3) and (4) provide further interpretative provisions.