PM211200 - Difference in treatment between individuals and non-individuals

There are some common areas where income tax and corporation tax rules may diverge. For example, special rules apply to a company’s loan relationships. Detailed guidance can be found at CFM36000 onwards. Similarly, R&D tax relief may be available to company members but cannot be claimed by individual partners. Guidance on this is available at CIRD81220. Management expenses are available to ‘companies with investment business’ (see CTM08000 onwards) and will be available where the investment business is carried on in partnership. Care should be taken to ensure that, where any relief that is available to companies but not to individuals is in point, only the amount of relief that is properly attributable to company members is claimed.

Mixed membership of individuals and companies may also impact on the ability to claim certain reliefs. For example, the Annual Investment Allowance (AIA), which provides relief against the cost of business plant and machinery, is only available to partnerships, all of whose members are individuals (see CA23082). This is also covered in this manual at PM162000.