Management expenses for investment company

Management expenses for investment company

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A company has a rental property (let to unconnected parties) & a large portfolio of stocks & shares from which a large amount of dividends are received.

The rental income, net of property expenses, is chargeable to Corporation Tax as Property Income. The dividend income is not chargeable at all.

But, can the stockbrokers portfolio management charges be treated as investment company management expenses & set against the Property Income or, if in excess of the Property Income, can they be carried forward as Excess Management Expenses?

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By geroge
26th Oct 2014 22:52
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By Novakova
27th Oct 2014 06:54

Management expenses for investment company

Stockbrokers portfolio management charges are normally deducted as management expenses not only from property income but also from say capital gains, bank interest etc. Take care not to omit these from the Corporation Tax return.

Check out legislation in CTA 2009 s.1219 onwards.

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By King_Maker
27th Oct 2014 07:42

I suspect that the main problem is whether those fees are capital expenditure?

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