[CTM08050] Corporation Tax: management expenses: investment company – business of making investments: case law
In the context of CTA09/S1218B‘making’ can mean simply ‘investing and holding’. This comes from the dicta of Rowlatt J in CIR v Tyre Investment Trust Ltd 12TC656. There is no reason for you to refuse investment company status to a company that makes a single investment, on that ground alone.
The meaning of ‘business’ in Section 1218B
In Medway Housing Society Ltd v Cook, 69TC319, the High Court upheld the decision of a Special Commissioner, that the Society was an investment company within the meaning of Section 130. The Special Commissioner thought the correct approach was to start with the Section 130 definition and ask whether, on its ordinary meaning, the business of the Society fell within it.