79BContributions to urban regeneration companiesU.K.
(1)Notwithstanding anything in section 74, but subject to the provisions of this section, where a [F1company] carrying on a [F2trade or profession] makes any contribution (whether in cash or in kind) to a designated urban regeneration company, any expenditure incurred by [F3the company] in making the contribution may be deducted as an expense in computing the profits of the [F2trade or profession][F4for the purposes of corporation tax] if it would not otherwise be so deductible.
(2)Where any such contribution is made by [F5 a company with investment business], any expenditure allowable as a deduction under subsection (1) above shall for the purposes of section 75 be treated as expenses of management.
[F6(2A)Where any such contribution is made by a company in relation to which section 76 applies (expenses of insurance companies) any expenditure allowable as a deduction under subsection (1) above shall for the purposes of that section be treated as expenses payable which fall to be brought into account at Step 1 in subsection (7) of that section.]
(3)Subsection (1) above does not apply in relation to a contribution made by [F7any company if either the company or any person connected with the company] receives or is entitled to receive a benefit of any kind whatsoever for or in connection with the making of that contribution, whether from the urban regeneration company concerned or from any other person.
(4)In any case where—
(a)relief has been given under subsection (1) above in respect of a contribution [F8made by a company], and
(b)any benefit received in any [F9accounting period] by [F10the company or any person connected with the company] is in any way attributable to that contribution,
[F11the company shall] in respect of that [F9accounting period] be charged to [F12corporation] tax under Case I or Case II of Schedule D or, if [F13the company] is not chargeable to [F12corporation] tax under either of those Cases for that period, under Case VI of Schedule D on an amount equal to the value of that benefit.
(5)In this section “urban regeneration company” means any body of persons (whether corporate or unincorporate) which the Treasury by order designates as an urban regeneration company for the purposes of this section.
(6)The Treasury may only make an order under subsection (5) above designating a body as an urban regeneration company for the purposes of this section if they consider that each of the criteria in subsection (7) below is satisfied in the case of the body.
(7)The criteria are that—
(a)the sole or main function of the body is to co-ordinate the regeneration of a specific urban area in the United Kingdom;
(b)the body is expected to seek to perform that function by creating a plan for the development of that area and endeavouring to secure that the plan is carried into effect;
(c)in co-ordinating the regeneration of that area, the body is expected to work together with some or all of the public or local authorities which exercise functions in relation to the whole or part of that area.
(8)An order under subsection (5) above may be framed so as to take effect on a date earlier than the making of the order, but not earlier than—
(a)1st April 2003, in the case of the first order under that subsection, or
(b)three months before the date on which the order is made, in the case of any subsequent order.
(9)Section 839 (connected persons) applies for the purposes of this section.
(10)This section applies to contributions made on or after 1st April 2003.
Textual Amendments
F1Word in s. 79B(1) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 50(2)(a) (with Sch. 2)
F2Words in s. 79B(1) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 50(2)(b) (with Sch. 2)
F3Words in s. 79B(1) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 50(2)(c) (with Sch. 2)
F4Words in s. 79B(1) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 50(2)(d) (with Sch. 2)
F5Words in s. 79B(2) substituted (28.9.2004 with effect in accordance with art. 1(2) of the amending S.I.) by The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004 (S.I. 2004/2310), art. 1(2), Sch. para. 3(2)
F6S. 79B(2A) inserted (28.9.2004 with effect in accordance with art. 1(2) of the amending S.I.) by The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004 (S.I. 2004/2310), art. 1(2), Sch. para. 3(3)
F7Words in s.79B(3) inserted (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 50(3) (with Sch. 2)
F8Words in s. 79B(4)(a) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 50(4)(a) (with Sch. 2)
F9Words in s. 79B(4) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 50(4)(b) (with Sch. 2)
F10Words in s. 79B(4)(b) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 50(4)(c) (with Sch. 2)
F11Words in s. 79B(4) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 50(4)(d) (with Sch. 2)
F12Words in s. 79B(4) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 50(4)(e) (with Sch. 2)
F13Words in s. 79B(4) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 50(4)(f) (with Sch. 2)