Part 4.6.11 of the Tax and Duty Manual covering expenses of management of investment companies has been updated to include reference to the deductibility of interest payments, according to eBrief 50/15.

According to the eBrief, for an expense to be an expense of management, it must be incurred in the managing of the business. As such, interest incurred on capital acquisitions is part of the activity of raising finance and not regarded as an expense of management. In this regard, the new insertion into the Tax and Duty Manual clarifies that interest paid on borrowings relating to capital acquisitions is not deductible as an expense of management.