Income and Corporation Taxes Act 1988

[F1 79A Contributions to training and enterprise councils and local enterprise companies. U.K.

(1) Notwithstanding anything in section 74, but subject to the provisions of this section, where a person carrying on a trade, profession or vocation makes any contribution (whether in cash or in kind) to a training and enterprise council, [F2 business link organisation] or a local enterprise company, any expenditure incurred by him in making the contribution may be deducted as an expense in computing the [F3 profits] of the trade, profession or vocation for the purposes of tax if it would not otherwise be so deductible.

(2) Where any such contribution is made by an investment company any expenditure allowable as a deduction under subsection (1) above shall for the purposes of section 75 be treated as expenses of management.

(3) Subsection (1) above does not apply in relation to a contribution made by any person if either he or any person connected with him 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 council, [F4 organisation] or 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, and

(b) any benefit received in any chargeable period by the contributor or any person connected with him is in any way attributable to that contribution,

the contributor shall in respect of that chargeable period be charged to tax under Case I or Case II of Schedule D, or if he is not chargeable to 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—

[F5 (aa) “business link organisation” means any person authorised by or on behalf of the Secretary of State to use a service mark (within the meaning of the Trade Marks (Amendment) Act 1984) designated by the Secretary of State for the purposes of this paragraph]

(a) “training and enterprise council” means a body with which the Secretary of State has made an agreement (not being one which has terminated) under which it is agreed that the body shall carry out the functions of a training and enterprise council, and

(b) “local enterprise company” means a company with which an agreement (not being one which has terminated) under which it is agreed that the company shall carry out the functions of a local enterprise company has been made by the Scottish Development Agency, the Highlands and Islands Development Board, Scottish Enterprise or Highlands and Islands Enterprise.

(6) Section 839 applies for the purposes of subsections (3) and (4) above.

(7) This section applies to contributions made on or after 1st April 1990 [F6 or, in the case of a contribution to a business link organisation, 30th November 1993] and before 1st April [F7 2000].]

Textual Amendments

F1 1990 s.76.

F2 Words in s. 79A(1) inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 145(3)

F3 Words in s. 79A(1) substituted (31.7.1998) by Finance Act 1998 (c. 36), s. 46(3)(a)(b), Sch. 7 para. 1

F4 Word in s. 79A(3) inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 145(3)

F5 S. 79A(5)(aa) inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 145(4)

F6 Words in s. 79A(7) inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 145(5)

F7 Word in s. 79A(7) substituted (3.5.1994) by Finance Act 1994 (c. 9), s. 145(1)