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HMRC internal manual

Company Taxation Manual

HM Revenue & Customs
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Corporation Tax: management expenses: investment company - status


An ‘investment company’ within old ICTA88/S130 (up to 31 March 2004) is any company:

  • whose business consists wholly or mainly in the making of investments,


  • the principal part of whose income is derived from those investments.

Under the original Section 130 the meaning of ‘investment company’ includes:

  • any savings bank, or
  • other bank for savings,

but excludes a bank for savings that, for the purposes of the Trustee Savings Bank Act 1985, is a successor, or further successor, to a trustee savings bank.

For details of Section 130 as it applies to periods starting on or after 1 April 2004 see CTM08040.

The case law on the meaning of the various phrases in the first part of the test shown above applies to both the pre and post 1 April 2004 versions (see CTM08050).

The case law on the meaning of ‘the principal part of the income’ applies, as does the test, only to periods up to 31 March 2004. There are details at CTM08030.

The meaning of ‘investment company’ has been retained for the purposes of ICTA88/S573 and for the transitional provisions of FA04/S43.