Commentary

B2.416 Companies—payments to subsidiaries and other companies

Business tax
Business tax | Commentary

B2.416 Companies—payments to subsidiaries and other companies

Business tax | Commentary

B2.416 Companies—payments to subsidiaries and other companies

With regard to general administration expenses of a company, see BIM42510.

Deductible inter-company expenses

The following have been held to be deductible:

  1.  

    •     a sum paid to the promoters of an exhibition in pursuance of a guarantee, and with a view to obtaining a contract, even though no contract was obtained1

  2.  

    •     a sum paid to another company under an agreement to manage that company's business, the payment being to make up a deficiency in that company's dividend2

  3.  

    •     a sum paid to keep another company out of production3

  4.  

    •     losses on advances to

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