In 1915 new legislation provided investment companies and certain life insurance companies with tax relief for management expenses. The aim of the legislation was to put investment companies into a broadly similar position to trading companies. The statutory provisions remained essentially unchanged until 2004.
Changes have affected the following broad areas:
•To be eligible for relief for expenses of management, a company must be a ‘company with investment business’, as defined in CTA09/S1218B
•The number of companies qualifying for relief for management expenses is now more extensive as the definition is less restrictive