Commentary on Sections Overview Chapter 3: Amounts treated as expenses of management Section 1246: Levies under FISMA 2000
3147.This section allows a deduction for certain payments arising from FISMA. It is based on section 76B of ICTA. The corresponding rule for trading income is in section 92.
3148.A company carrying on investment business may be called upon to make payments in connection with FISMA. The payments are of two sorts:
	a “levy” to meet the running costs of the schemes set up by FISMA; and
	“costs” which may be awarded at the conclusion of a hearing of a complaint.
3149.Section 76B of ICTA allows as a management expense both sorts of payment. But there is a difficulty with one sort of levy. So some changes are made in this section and in the trading income section to ensure that all the payments under FISMA qualify for a deduction. Schedule 1 to this Act makes a corresponding relaxation in section 155 of ITTOIA. See Change 22 in Annex 1.