Section 133D — Corporation Tax Act 2009: Excluded expenses

Excluded expenses 133D 1 Expenses in respect of relevant compensation are excluded by this section if the compensation is in respect of—

a an administrative error, b the failure of a computer or electronic system, or c loss or damage which is wholly or mainly attributable to an unconnected third party.

2 In subsection (1) “ third party ” means a person who is neither the company mentioned in section 133A(1) nor (if different) the company in respect of whose conduct the compensation is paid or payable (see section 133A(3)(b)).

3 For the purposes of this section a third party (“TP”) is an “unconnected third party” unless—

a TP was, at the time of the relevant actions, connected with the company mentioned in section 133A(1) or (if different) the company in respect of whose conduct the compensation is paid or payable, or b in taking one or more of the relevant actions, TP was acting under arrangements with the company mentioned in paragraph (a) or (as the case may be) either of the companies mentioned in paragraph (a).

4 In this section “ the relevant actions ” means the actions as a result of which the loss or damage is wholly or mainly attributable to TP (and references to actions or the taking of actions include failures to act).

5 Section 1122 of CTA 2010 (meaning of “connected persons”) applies for the purposes of this section, but subject to the following modification.

6 Section 1122 has effect as if after subsection (8) there were inserted— 9 A person (“A”) is connected with any person who is an employee of A or by whom A is employed.

10 For the purposes of this section any director or other officer of a company is to be treated as employed by that company.