Commentary on Sections Overview Overview Section 92: Levies etc under FISMA 2000
356.This section provides for the inclusion, in a calculation of trading profits, of certain payments arising from FISMA. It is based on section 76A of ICTA. The corresponding rule for income tax is in section 155 of ITTOIA.
357.Subsection (1) applies the section to any company that pays a “levy” and removes three minor restrictions.
	Section 76A of ICTA applies only to an “authorised person”. This section removes that restriction.
	The section does not reproduce the restriction in section 76A(2)(e) of ICTA for some “costs”.
	A trading company that also has investment business may qualify for a deduction under this section which is denied by section 76A(1)(b) of ICTA.
See Change 22 in Annex 1.
358.Subsection (1) provides for a deduction. Most FISMA levies would be allowable expenses under the basic trade profit calculation rules. The purpose of this provision is to deal with the exceptional case where deduction of a levy would otherwise be prevented by a prohibitive rule.
359.The expenses allowable are determined by reference to FISMA. Subsections (2) and (3) provide the links with FISMA.
360.There is a similar rule about FISMA repayments in section 104.