Corporation Tax Act 2010 section 303

Management expenses

Section 303 prohibits a company from deducting investment management expenses against its ring fence profits.

• Companies with both investment business and ring fence trades must keep the two sets of costs separate for tax purposes.
• Expenses of managing a company's investment business cannot be set against ring fence profits.
• Ring fence profits are those arising from oil extraction activities in the UK and UK continental shelf.
• Investment management expenses must be relieved against other, non-ring-fence profits instead.