CTM08239 | Corporation Tax: management expenses: targeted anti-avoidance rule (TAAR) - outlying provisions

Various provisions of the Taxes Acts deem or treat particular expenses as expenses of management. Where amounts are simply deemed to be or are treated as expenses of management within CTA09/S1219 (1) then the remaining provisions of CTA09/PART16 (for example capital exclusion), including S1248 automatically apply to the expenditure.

Other provisions of the Taxes Acts state that certain expenditure is deductible as expenses of management. CTA09/S1248 (4) ensures that these expenses are also subject to the TAAR.

Certain manufactured payments are deemed to be expenses of management by CTA10/S791. CTA10/S799 has its own unallowable purpose rule. CTA09/S1248 (3) ensures that this specific unallowable purpose rule continues to apply in priority to S1248. This is not to say that S1248 cannot apply, but it will only apply in appropriate circumstances where CTA10/S799 does not. CTA09/S1219 (2) and S1220 do however have priority over CTA10/S799, so the order is S1219 (2), then CTA10/S799, and then if necessary CTA09/S1248.