Corporation Tax Act 2009 section 1235

Employees seconded to charities and educational establishments

Section 1235 allows investment companies to treat the costs of employees temporarily seconded to charities or educational establishments as deductible expenses of management.

• Applies to companies whose business consists wholly or partly of making investments
• The secondment must be to a charity or an educational establishment and must be stated and intended to be temporary
• All employment expenses attributable to the seconded employee during the secondment period are treated as expenses of management
• The deduction covers all costs during the secondment, not only those that would have been allowable had the employee remained in the employer's business