Corporation Tax Act 2009

Chapter 5 Companies with investment business: receipts

1252 Industrial development grants

(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.

1253 Contributions to local enterprise organisations or urban regeneration companies: disqualifying benefits

(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.

1254 Repayments under FISMA 2000

(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.