corporation tax deductions
In general, in order to arrive at the taxable profits for a company, expenses are deductible provided that they are of a revenue nature rather than a capital nature and that they are wholly and exclusively laid out or expended for the purposes of the trade or business.
There are special provisions that determine the timing of or the deductibility of certain specific types of expenditure, for example no deduction is allowed for expenditure on business gifts and business entertainment although exceptions apply for certain small gifts.
Capital allowances are available for certain categories of expenditure (see capital allowances) instead of commercial depreciation.
Dividends are not deductible, whereas interest and royalties generally are (with certain restrictions).