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The Management expenses template computes the expenses of management that a company with investment business can deduct under s1219 of the Corporation Tax Act 2009 (CTA 2009). Where a company has an investment business, its management expenses are relieved against total profits rather than as a trading deduction, and this template identifies the allowable amount.

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When should I use this template?

Use it where the company has selected UK investment business as a business type in Return information. It performs the investment-business equivalent of the adjustment-of-profit computation, arriving at the management expenses available for relief.

Before you start

Before using this template, make sure you have:

  • Selected UK investment business as a business type in the Business type section of the Return information template.
  • Completed the Profit and loss / OCI analysis for the investment business, as this template consolidates the amounts analysed there.

How the computation works

The template brings together the expenses of the investment business and, using the tax treatments analysed in the P&L / OCI analysis and the related schedules, identifies the amounts that are allowable management expenses. Amounts that are not expenses of management, or that are otherwise disallowable, are excluded.

Where you add other management expense items directly, each can be given an iXBRL tag (the "allowable management expenses" tag) via a dropdown, so the amount is tagged correctly in the computation export.

What flows through to the rest of Corporation Tax?

The allowable management expenses feed the Taxable income computation, where they are deducted from total profits. Excess management expenses can generally be carried forward for relief in later periods.

Where the data comes from

  • The expenses are drawn from the Profit and loss / OCI analysis for the investment business (which reads the trial balance), using the tax treatments applied there.
  • Rates/period information comes from Rates and allowances, and the business type from Return information.
  • The allowable management expenses feed the Taxable income computation.

Frequently asked questions

How are management expenses relieved?

Management expenses of a company with investment business are deducted from total profits under CTA 2009 s1219, rather than as a trading deduction.

Why does this template appear?

Because UK investment business has been selected as a business type in Return information.

How do I tag a management expense for iXBRL?

Where you enter an other management expense item, select the allowable management expenses tag from the dropdown on that row.

What happens to excess management expenses?

Excess management expenses can generally be carried forward and relieved against profits of later periods.