Income Tax (Trading and Other Income) Act 2005

Industrial development grantsU.K.

105Industrial development grantsU.K.

(1)This section applies if a person carrying on a trade receives a payment by way of a grant under—

(a)section 7 or 8 of the Industrial Development Act 1982 (c. 52), or

(b)Article 7, 9 or 30 of the Industrial Development (Northern Ireland) Order 1982 (S.I. 1982/1083 (N.I. 15)).

(2)The payment is brought into account as a receipt in calculating the profits of the trade unless—

(a)the grant is designated as made towards the cost of specified capital expenditure,

(b)the grant is designated as compensation for the loss of capital assets, or

(c)the grant is for all or part of a corporation tax liability (including one that has already been met).

(3)This section does not apply to professions or vocations.