Corporation Tax Act 2009 section 1219

Expenses of management of a company's investment business

Section 1219 sets out how companies with investment business can deduct their management expenses from total profits when calculating their corporation tax liability.

• Management expenses relating to a company's investment business for an accounting period are deducted from total profits before any other deductions
• Only expenses related to the activity of making investments qualify, and the investments must not be held for an unallowable purpose during the relevant accounting period
• Capital expenditure cannot be deducted as management expenses, nor can expenses that are already deductible elsewhere in the tax computation
• Where expenses need to be split between qualifying and non-qualifying activities, the apportionment must be made on a just and reasonable basis