Part 2Trading income
Chapter 6Trade profits: receipts
Industrial development grants
105Industrial development grants
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, F1 (but see subsection (2A))
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).
F22A
Subsection (2)(a) is to be disregarded in calculating the profits of a trade on the cash basis.
3
This section does not apply to professions or vocations.