Corporation Tax Act 2009 section 1246

Levies under FISMA 2000

Section 1246 provides that certain payments made under the Financial Services and Markets Act 2000 (FISMA) by companies with investment business are treated as deductible expenses of management.

• Levies paid by investment companies to fund regulatory schemes under FISMA 2000 qualify as management expenses
• Costs awarded against a company following a complaint hearing under FISMA 2000 also qualify as management expenses
• The deduction applies specifically to companies carrying on investment business, with a parallel rule for trading companies in section 92
• The section ensures all types of FISMA-related payments, including certain levies that were previously problematic, qualify for a tax deduction