Corporation Tax Act 2009 section 1083

Refunds of expenditure treated as income chargeable to tax

Section 1083 deals with what happens when a company receives a refund of expenditure for which it has already claimed certain tax reliefs for intangible fixed assets, requiring such refunds to be treated as taxable income.

• If a company receives a refund of expenditure that previously qualified for tax relief under the intangible fixed assets rules, a tax charge arises
• The refund is treated as income chargeable to corporation tax under the rules in Chapter 2 of Part 3 of the Act
• This prevents companies from obtaining a permanent tax benefit where the underlying expenditure is later returned to them
• The provision originated from paragraph 15 of Schedule 12 to the Finance Act 2002 and was amended by the Finance Act 2024