Income and Corporation Taxes Act 1988

[F179A 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 [F2company] carrying on a [F3trade or profession] makes any contribution (whether in cash or in kind) to a training and enterprise council, [F4business link organisation] or a local enterprise company, any expenditure incurred by [F5the company] in making the contribution may be deducted as an expense in computing the [F6profits] of the [F3trade or profession] for the purposes of [F7corporation] tax if it would not otherwise be so deductible.

(2)Where any such contribution is made by [F8a 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.

[F9(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 [F10any 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 council, [F11organisation] 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 [F12made by a company], and

(b)any benefit received in any [F13accounting period] by [F14the company or any person connected with the company] is in any way attributable to that contribution,

[F15the company shall] in respect of that [F13accounting period] be charged to [F16corporation] tax under Case I or Case II of Schedule D, or if [F17the company] is not chargeable to [F16corporation] 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—

[F18(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 F19. . . 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 [F20or, in the case of a contribution to a business link organisation, 30th November 1993]F21. . . .]

Textual Amendments

F11990 s.76.

F2Word in s. 79A(1) substituted (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. 49(2)(a) (with Sch. 2)

F3Words in s. 79A(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. 49(2)(b) (with Sch. 2)

F4Words in s. 79A(1) inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 145(3)

F5Words in s. 79A(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. 49(2)(c) (with Sch. 2)

F7Word in s. 79A(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. 49(2)(d) (with Sch. 2)

F8Words in s. 79A(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)

F9S. 79A(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)

F10Words in s. 79A(3) 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. 49(3) (with Sch. 2)

F11Word in s. 79A(3) inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 145(3)

F12Words in s. 79A(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. 49(4)(a) (with Sch. 2)

F13Words in s. 79A(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. 49(4)(b) (with Sch. 2)

F14Words in s. 79A(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. 49(4)(c) (with Sch. 2)

F15Words in s. 79A(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. 49(4)(d) (with Sch. 2)

F16Words in s. 79A(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. 49(4)(e) (with Sch. 2)

F17Words in s. 79A(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. 49(4)(f) (with Sch. 2)

F20Words in s. 79A(7) inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 145(5)

F21Words in s. 79A(7) repealed (28.7.2000) by Finance Act 2000 (c. 17), s. 88, Sch. 40 Pt. 2(9)