Section 84 — Corporation Tax Act 2009: Approval of local enterprise agencies

Approval of local enterprise agencies 84 1 The relevant national authority may approve a body as a local enterprise agency for the purposes of section 82 only if conditions A and B are met.

2 But if those conditions are met, the body may be approved—

a whatever its status or structure, and b even if it is not described as a local enterprise agency.

3 Condition A is that the relevant national authority is satisfied—

a that the body's sole aim is the promotion or encouragement of local enterprise, or b that one of the body's main aims is the promotion or encouragement of local enterprise and that it has or is about to have a separate fund for the sole purpose of pursuing that aim.

4 For this purpose “ local enterprise ” means industrial and commercial activity or enterprise in a particular area in the United Kingdom, with particular reference to encouraging the formation and development of small businesses.

5 Condition B is that the body is precluded from paying or transferring any of its income or profit directly or indirectly—

a to any of its members, or b to any person charged with the control and direction of its affairs.

6 The payment of—

a reasonable remuneration for goods, labour or power supplied or for services provided, b reasonable interest on money lent, or c reasonable rent for premises, does not count as a payment or transfer of income or profit for the purposes of subsection (5).