Section 853 — Corporation Tax Act 2009: Grants to be left out of account for tax purposes

Grants to be left out of account for tax purposes 853 1 This section applies to the following grants (“exempt grants”)—

a grants under Part 2 of the Industrial Development Act 1982 (c. 52) (regional development grants),

and b grants made under Northern Ireland legislation and declared by the Treasury by order to correspond to a grant under that Part.

2 A gain in respect of an exempt grant to a company is ignored for the purposes of this Part, even though it is recognised in determining the company's profit or loss.

3 This subsection applies if, as a result of an exempt grant being brought into account by the company to which it is made, there is a reduction—

a in the amount of a loss recognised in determining the company's profit or loss, or b in the amount of expenditure on an intangible fixed asset that is capitalised for accounting purposes.

4 If subsection (3) applies, the amount of the reduction is added back for the purposes of this Part.