Corporation Tax Act 2009 section 1245

Payments to Export Credits Guarantee Department

Section 1245 allows a company with investment business to treat certain payments made to the Export Credits Guarantee Department as deductible management expenses.

• Applies to companies with investment business that make payments to the Export Credits Guarantee Department (ECGD)
• The payments must arise under an agreement made as a result of arrangements under section 2 of the Export and Investment Guarantees Act 1991, which deals with insurance in connection with overseas investment
• Payments made with a view to entering into such an agreement also qualify
• Qualifying payments are treated as expenses of management, making them deductible for corporation tax purposes