Which companies may deduct management expenses?

A deduction for management expenses is available for 鈥榗ompanies with investment business鈥�. This is defined as a 鈥榗ompany whose business consists wholly or partly of making investments鈥�. It therefore includes trading companies which also have an investment business. For further details on the definition, see the Investment companies and companies with investment business guidance note.

Expenses of management of the company鈥檚 investment business which are referable to an accounting period are allowed as a deduction from the company鈥檚 total taxable profits. The expenses are 鈥榬eferable鈥� to that accounting period when they are debited to a company鈥檚 accounts in the profit and loss account or income statement, the statement of recognised gains or losses, or statement of changes in equity in accordance with GAAP. See 鈥楢ccounting period to which management expenses relate鈥� below for more information on this.

What general categories of expenditure will be treated as management expenses?

As a general rule, expenses will be allowable as management expenses only if they:

1. 鈥�

   relate to managing the company鈥檚 investment