Section 149 — Corporation Tax Act 2009: Exclusion of expenditure met by subsidies

Exclusion of expenditure met by subsidies 149 1 Expenditure is excluded for the purposes of section 147 so far as it has been, or is to be, met (directly or indirectly) by—

a the Crown, b a government or local or other public authority (whether in the United Kingdom or elsewhere), or c any person other than the person incurring the expenditure.

2 This is subject to the following exceptions.

3 Expenditure is not excluded for the purposes of section 147 if it is met (directly or indirectly) by a grant—

a made under Northern Ireland legislation, and b declared by the Treasury by an order under section 534 of CAA 2001 to correspond to a grant under Part 2 of the Industrial Development Act 1982 (c. 52).

4 Expenditure is not excluded for the purposes of section 147 if it is met (directly or indirectly) by—

a insurance money, or b other compensation money, payable in respect of an asset which has been destroyed, demolished or put out of use.

5 Expenditure is not excluded for the purposes of section 147 if—

a it has been, or is to be, met (directly or indirectly) by a person other than the Crown or a government or local or other public authority, and b no deduction is allowed for the expenditure in calculating for corporation or income tax purposes the profits of a trade carried on by that person.