Corporation Tax Act 2009 section 102

Industrial development grants

Section 102 deals with how industrial development grants received by a company carrying on a trade are treated for corporation tax purposes.

• Grants received under the Industrial Development Act 1982 or the corresponding Northern Ireland Order 1982 are generally treated as taxable trading receipts.
• A grant is not treated as a trading receipt if it is designated as being towards the cost of specified capital expenditure.
• A grant is also excluded from trading receipts if it is designated as compensation for the loss of capital assets.
• Grants made to cover all or part of a corporation tax liability, whether already paid or not, are likewise excluded from trading receipts.