Section 253 | Companies with investment business

(1)This section applies if the qualifying activity of a person entitled to an allowance or liable to a charge for a chargeable period is managing the investment business.^F1

(2)The allowance is, as far as possible, to be given effect by deducting the amount of the allowance from any income for the period of the business; and section 1233 of CTA 2009 (addition of allowances to company’s expenses of management) applies only in so far as it cannot be given effect in this way.^F2

(3)The charge is to be given effect by treating the amount of the charge as income of the business.

(4)Except as provided by subsections (2) and (3), the Corporation Tax Acts apply in relation to the allowance or charge as if they were required to be given effect in calculating the profits of that person’s trade for the purposes of Part 3 of CTA 2009.^F3

(5)Corresponding allowances or charges in the case of the same plant or machinery are not to be made under this Part both under this section and in another way.

(6)Expenditure to which this section applies is not to be taken into account otherwise than under this Part or as provided by section 1233 or 1244A of CTA 2009.^F4F5

(7)This section is subject to sections 682(3) and 699(3) of CTA 2010.^F6