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, [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).
[F2(2A)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.
Textual Amendments
F1Words in s. 105(2)(a) inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 22(2)
F2S. 105(2A) inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 22(3)