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CTA09/Part 16/Chapter3

Chapter 3 makes provision for certain expenses to be treated as expenses of management within CTA09/S1219(1)

Staffing Costs

• CTA09/S1239 treats as expenses of management statutory redundancy payments made under the legislation specified:

• Part 11 of »Ê¹ÚÌåÓýapp Employment Rights Act 1996 and
• Part 12 of the Employment Rights(Northern Ireland) Order 1996

Under CTA09/S1242 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, you should follow the detailed guidance at BIM47200 onwards.

• CTA09/S1236 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. »Ê¹ÚÌåÓýapp employers must pay the gifts over to an agency approved by HMRC.
• »Ê¹ÚÌåÓýappre is relief under CTA09/S1235 for expenditure attributable to the employment where a ‘company with investment businessâ€� 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. »Ê¹ÚÌåÓýappre is detailed guidance for trading companies on employees seconded to charities at BIM47115 and to educational establishments at BIM47120.
• CTA09/S1234 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 ITEPA03/S225.
• CTA09/1238 allows relief for costs of retraining employees
• CTA09/S1237 allows the costs of counselling services for employees.

Other expenditure

• CTA09/ S1244 allows contributions to local enterprise organsisations and to urban regeneration companies. »Ê¹ÚÌåÓýappse bodies are defined in CTA09/S83 and S86 respectively

CTA09/S1245

• CTA09/S1245 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. »Ê¹ÚÌåÓýappre is guidance on the Export Credits Guarantee insurance scheme at BIM45580.
• CTA09/S1246 allows, as expenses of management, levies and other expenditure incurred under Financial Services and Markets Act 2000 (FISMA)