CTM08430 | Corporation Tax: management expenses: statutory provisions
From HM Revenue & Customs · Company Taxation Manual
Chapter 3 provides for certain expenses to be treated as expenses of management within .
Staffing Costs
treats as expenses of management statutory redundancy payments made under and of the Employment Rights (Northern Ireland) Order.
Under additional payments up to a maximum of three times the amount of the statutory redundancy payment will be eligible for relief as expenses of management.
Where a 'company with investment business' claims redundancy payments as management expenses, refer to the guidance at onwards.
treats the employers' expenses of operating a payroll giving/payroll deduction scheme as expenses of management. Employees may authorise their employers to deduct gifts to charities from their pay. The employers must pay the gifts over to an agency approved by HMRC.
There is relief under for expenditure attributable to the employment where a ‘company with investment business’ makes available the services of an employee to a charity (or to certain educational establishments) on a temporary basis. In such a case the expenditure on the remuneration and related costs of the employee may still qualify as an expense of management. There is detailed guidance for trading companies on employees seconded to charities at and to educational establishments at .
treats as an expense of management a payment made or any other valuable consideration given to an employee in respect of a restrictive undertaking where that payment is taxed as earnings by .
allows relief for costs of retraining employees.
allows the costs of counselling services for employees.
Other expenditure
allows contributions to local enterprise organsisations and to urban regeneration companies. These bodies are defined in and S86 respectively.
treats certain sums paid by a person to the Export Credits Guarantee Department under investment insurance schemes as management expenses, whether or not the sums would be allowable on normal principles. There is guidance on the Export Credits Guarantee insurance scheme at .
allows, as expenses of management, levies and other expenditure incurred under Financial Services and Markets Act 2000 (FISMA).