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,

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.