Section 1252 — Corporation Tax Act 2009: Industrial development grants

Industrial development grants 1252 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.