PART IV PROVISIONS RELATING TO THE SCHEDULE D CHARGE
C1CHAPTER V COMPUTATIONAL PROVISIONS
Deductions
86 Employees seconded to charities and educational establishments.
1
F6M1 If a company (“the employer”) carrying on a trade, profession or business for the purposes of which it employs a person (“the employee”) makes available to a charity, on a basis which is expressed and intended to be of a temporary nature, the services of the employee then, F4notwithstanding anything in section 74, 75 or 76, any expenditure incurred by the employer which is attributable to the employment of that employee shall continue to be deductible in the manner and to the like extent as if, during the time that his services are so made available to the charity, they continued to be available for the purposes of the employer’s trade, business F7or profession.
2
In subsection (1) above—
“charity” has the same meaning as in section 506;
F5“deductible” means—
- a
deductible as an expense in computing the profits of the employer to be charged F8to corporation tax under Case I or II of Schedule D,
- b
deductible as expenses of management for the purposes of section 75, or
- c
falling to be brought into account in accordance with section 76 as expenses payable which fall to be brought into account at Step 1 in subsection (7) of that section,
as the case may be.
- a
3
With respect to expenditure attributable to the employment of a person on or after 26th November 1986 F1. . . , this section shall have effect as if the references to a charity included references to any of the following bodies, that is to say—
F2a
in England and Wales, any body falling within subsection (4) below;
b
in Scotland, any body falling within subsection (5) below;
c
in Northern Ireland, any body falling within subsection (6) below; and
d
any other educational body which is for the time being approved for the purposes of this section by the Secretary of State or, in Northern Ireland, the Department of Education for Northern Ireland.
F34
A body falls within this subsection if it is—
a
a local education authority;
b
an educational institution maintained or otherwise supported by such an authority (including a grant-maintained school or a grant-maintained special school within the meaning of the Education Act 1996);
c
an independent school, within the meaning of the Education Act 1996, whose registration under section 465 of that Act is final; or
d
an institution within the further education sector, or the higher education sector, within the meaning of the Further and Higher Education Act 1992.
5
A body falls within this subsection if it is—
a
an education authority;
b
an educational establishment managed by such an authority within the meaning of the Education (Scotland) Act 1980 (“the 1980 Act”);
c
a public or grant-aided school within the meaning of the 1980 Act;
d
a self-governing school within the meaning of the Self-Governing Schools etc. (Scotland) Act 1989;
e
an independent school within the meaning of the 1980 Act;
f
a central institution within the meaning of the 1980 Act;
g
an institution within the higher education sector within the meaning of section 56(2) of the Further and Higher Education (Scotland) Act 1992; or
h
a college of further education within the meaning of section 36(1) of that Act.
6
A body falls within this subsection if it is—
a
an education or library board within the meaning of the Education and Libraries (Northern Ireland) Order 1986;
b
a college of education or a controlled, maintained, grant-maintained integrated, controlled integrated, voluntary or independent school within the meaning of that Order; or
c
an institution of further education within the meaning of the Further Education (Northern Ireland) Order 1997.
See—1979(C) s.122—election to take capital gain or loss into account when asset appropriated to stock in trade.1989 ss.67-74—employee share ownership trusts.Banking Act 1987 (c.22) s.66—contributions to the Deposit Protection Fund.