Section 1244A — Corporation Tax Act 2009: Contributions to flood and coastal erosion risk management projects

Contributions to flood and coastal erosion risk management projects 1244A 1 This section applies if a company with investment business (“ the contributor ”) incurs expenses in making a qualifying contribution to a qualifying flood or coastal erosion risk management project.

2 The expenses are treated for the purposes of Chapter 2 as expenses of management.

3 But if, in connection with the making of the contribution, the contributor or a connected person—

a receives a disqualifying benefit, or b is entitled to receive such a benefit, no deduction is allowed under section 1219.

4 For the purposes of subsection (3) it does not matter whether a person receives, or is entitled to receive, the benefit—

a from the carrying out of the project, or b from any person.

5 In this section “ disqualifying benefit ” means a benefit consisting of money or other property, but it does not include—

a a refund of the contribution, if the contribution is a sum of money;

b compensation for the contribution, if the contribution is the provision of services;

c a structure that—

i is or is to be used for the purposes of flood or coastal erosion risk management, and ii is put in place in carrying out the project;

d an addition to a structure where—

i the structure is or is to be used for the purposes of flood or coastal erosion risk management, and ii the addition is made in carrying out the project;

e land, plant or machinery that is or is to be used, in the realization of the project, for the purposes of flood or coastal erosion risk management;

f a right over land that is or is to be used, in the realization of the project, for the purposes of flood or coastal erosion risk management.

6 In subsection (5) “ structure ” includes road, path, pipe, earthwork, plant and machinery.

7 Section 86B applies for the purposes of this section as it applies for the purposes of section 86A.