This note provides an overview of the relief that is available in respect of the management expenses of a company's investment business. The guidance will focus on the provisions as they apply since 1 April 2004. Before that date, management expenses could only be claimed by UK-resident companies, and only by investment companies, ie not by companies with investment business.

Relief for management expenses

A deduction will be available against the company's total profits in an accounting period for the management expenses that relate to that period. However, where investments are held for an unallowable purpose, no deduction will be available. This is considered further below. CTA 2009, s 1219(1)-(2)

Any expenses which are deductible against the company's profits under the normal rules are not treated as management expenses. For example, if the business is a rental business, any expenses that are directly attributable to that activity will not be included as management expenses.

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