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It would be fairly unusual for an investment company to buy another investment business, but it might do so if, for example, it buys a property business from a third party and subsumes that into its own property business.  It might assume the pension obligations to employees and former employees of that business and would be able to deduct contributions as expenses of management accordingly.  In the particular case of a property business the expenditure may fall to be deducted as part of the property income computation rather than as expenses of management.  But none of it will be disallowed on the basis that it is capital in nature - see also BIM46025.

It is more likely that a company with investment business will buy shares in another company through a take-over or merger, the shares becoming an asset of its investment business.  Where an investment company buys shares in another company the pension obligations in respect of the employees and former employees of the company whose shares are bought will normally remain with that (latter) company. However, if the liability is, on the particular facts, taken on by the purchaser either as part of the terms under which the investment is acquired or subsequently, and contributions are made in respect of its investment business, those contributions will generally be deductible.