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HMRC internal manual

Company Taxation Manual

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HM Revenue & Customs
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Corporation Tax: management expenses: statutory provisions

The first part of this page is on specific expenditure that is to be treated as expenses of management under ICTA88/S75. The second part of this page is on specific expenditure that is not allowable as expenses of management under ICTA88/S75.

Allowable expenditure

Each provision designates specific expenditure as management expenses for the purpose of ICTA88/S75.

  • ICTA88/S79 (2) allows contributions to approved local enterprise agencies (also known as LEAs). There is guidance on this at BIM47610.
  • ICTA88/S79A (2) allows contributions to training and enterprise councils (also known as TECs) and to local enterprise companies (also known as LECs). There is guidance on this at BIM47610.
  • ICTA88/S79B (2) allows contributions to urban regeneration companies.
  • ICTA88/S85 (1) allows payments to trustees of approved profit sharing schemes. There is guidance on this at BIM44250 onwards.
  • ICTA88/S588 (4) allows relief for costs of training incurred on or after 6 April 1987.
  • ICTA88/S589A (9) allows the costs of counselling services for employees.

Prohibited expenditure

Each provision prohibits specific expenditure as management expenses for the purpose of ICTA88/S75.

  • ICTA88/S577 (1) prohibits relief for business entertaining expenses. There is guidance on this at BIM45000 onwards.
  • ICTA88/S577A (2) prohibits relief for expenditure involving the commission of various crimes. There is guidance on this at BIM43100 onwards.
  • ICTA88/S587 prohibits relief for certain payments in respect of war injuries to employees.