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HMRC internal manual

Capital Allowances Manual

Plant and Machinery Allowances (PMA): introduction: management of an investment company


Management of an investment company is a qualifying activity for PMA. The term ‘Investment Company’ has the same meaning as in CTA 09/ S1218 (formerly ICTA88/S130). It is a company:

  • whose business consists wholly or mainly in the making of investments, and
  • the principal part of whose income is derived from the investments that it makes.


A savings bank or other bank for savings is treated as an investment company unless it is a successor to a trustee savings bank for the purposes of the Trustee Savings Bank Act 1985.

When you decide whether an asset is provided for the purposes of the management of an investment company you should be guided by how you treat revenue costs like repairs and running expenses. If the revenue costs of an asset are treated as a management expense then expenditure to buy that asset is qualifying expenditure provided that it meets the normal conditions for being plant or machinery.

Writing-down and balancing allowances for any accounting period are given by deduction from income for that period and any excess allowances become management expenses, which can be offset against total profits for the same period or carried forward as excess management expenses to future periods. Balancing charges are taxed as income of the business.