CTM08330 - Corporation Tax: management expenses: directors' remuneration
The fact that sums of money are paid to the directors of a 바카라 사이트˜company with investment business바카라 사이트™ as remuneration does not mean conclusively that they qualify as management expenses under CTA09/S1219. When you decide whether such sums are allowable you should take broadly the same approach as you do for trading companies, but bear in mind there is no explicit 바카라 사이트˜wholly and exclusively바카라 사이트™ test in Section 1219.There is guidance on this at CTM08170. There is guidance on the remuneration of directors and close relatives of directors at BIM47105.
You have to consider whether the sums of directors바카라 사이트™ remuneration were expenses of management. The tax case of L G Berry Investments Ltd v Attwooll 41TC547 is about whether directors바카라 사이트™ fees were allowable as expenses of management. In this case Plowman J said the Special Commissioners were entitled to examine whether a management expense was 바카라 사이트˜reasonable, having regard to the requirements of the company바카라 사이트™s business and, in the case of directors바카라 사이트™ fees or other payments for services, to the actual services rendered to the company바카라 사이트™. The legislation in that case was ITA52/S425 (1), which included provisions similar to both CTA09/S1219 and CTA09/S1218B.
There is guidance at CTM08470 on the timing of the deduction for emoluments and the application of CTA09/S1249 and S1250 .