(1)If a company with investment business 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)),
the payment is to be treated as an amount to which the charge to corporation tax on income applies.
(2)Subsection (1) does not apply if—
(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)Tax is not charged under this section if the payment is taken into account (under another provision) in calculating profits for corporation tax purposes.
(1)This section applies if—
(a)a deduction has been made under section 1219 by virtue of section 1244 (contributions to local enterprise agencies or urban regeneration companies: expenses of management), and
(b)the contributor or a connected person receives a disqualifying benefit that is in any way attributable to the contribution.
(2)The contributor is to be treated as receiving, when the benefit is received, an amount—
(a)which is equal to the value of the benefit (so far as not brought into account in determining the amount of the deduction), and
(b)to which the charge to corporation tax on income applies.
(3)In this section “disqualifying benefit” has the same meaning as in section 1244.
Modifications etc. (not altering text)
C1S. 1253 applied (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 81(6) (with s. 147, Sch. 17)
(1)This section applies if—
(a)a deduction has been made under section 1219 by virtue of section 1244A (contributions to flood and coastal erosion risk management projects: expenses of management), and
(b)the contributor or a connected person receives—
(i)a refund of any part of the contribution, if the contribution is a sum of money, or
(ii)compensation for any part of the contribution, if the contribution is the provision of services,
in money or money's worth.
(2)The contributor is to be treated as receiving, when the refund or compensation is received, an amount—
(a)which is equal to so much of the refund or compensation, or so much of the value of the refund or compensation, as is not otherwise taken into account for corporation tax purposes, and
(b)to which the charge to corporation tax on income applies.]
Textual Amendments
F1S. 1253A inserted (with effect in accordance with Sch. 5 para. 9 of the amending Act) by Finance Act 2015 (c. 11), Sch. 5 para. 7
(1)If as a result of a repayment provision a payment—
(a)is made to a company with an investment business, and
(b)is not brought into account as a receipt of a trade under section 104, or as a receipt of a property business as a result of section 210,
the payment is to be treated as an amount to which the charge to corporation tax on income applies.
(2)In this section “repayment provision” means—
(a)any provision made by virtue of section 136(7) or 214(1)(e) of FISMA 2000, or
(b)any provision made by scheme rules for fees to be refunded in specified circumstances.
(3)In this section “scheme rules” means the rules referred to in paragraph 14(1) of Schedule 17 to FISMA 2000.