Section 927 — Corporation Tax Act 2009: Contributions not made by public bodies nor eligible for tax relief

Contributions not made by public bodies nor eligible for tax relief 927 1 A company is to be regarded as having incurred expenditure (despite section 926(1)) so far as the requirements in subsections (2) and (3) are met in relation to the expenditure.

2 The first requirement is that the person meeting the company's expenditure (“X”) is not a public body.

3 The second requirement is that—

a no allowance can be made under Chapter 2 of Part 11 of CAA 2001 (contribution allowances) in respect of X's expenditure, and b the expenditure is not allowed to be deducted in calculating the profits of a trade, profession or vocation carried on by X.

4 When determining for the purposes of subsection (3)(a) whether such an allowance can be made, assume that X is within the charge to tax.