Section 1244: Contributions to local enterprise organisations or urban regeneration companies
3142.This section allows deductions for contributions to local enterprise agencies, training and enterprise councils, local enterprise companies in Scotland, business links and urban regeneration companies. It is based on sections 79, 79A and 79B of ICTA. The corresponding rule for trading income is in section 82.
3143.Subsection (3) is an anti-avoidance rule. It prevents a company using the section to obtain a deduction for non-commercial expenditure, such as funding the training of a member of a shareholder’s family, by passing funds through one of these bodies. The source legislation disallows any deduction if there is a benefit to the company (or a connected person). This section merely restricts the deduction by the value of the benefit. See Change 18 in Annex 1.
3144.Subsection (6) of this section invokes the supporting sections 83 and 86.
3145.If a disqualifying benefit is later received it is charged to tax by section 1253.