Corporation Tax Act 2009 section 1244

Contributions to local enterprise organisations or urban regeneration companies

Section 1244 allows a company with investment business to deduct contributions made to local enterprise organisations or urban regeneration companies as expenses of management, subject to a reduction where a disqualifying benefit is received.

• Contributions (in cash or in kind) to local enterprise organisations or urban regeneration companies are treated as deductible expenses of management for investment companies.
• If the contributor or a connected person receives or is entitled to receive a disqualifying benefit, the deduction is reduced by the value of that benefit.
• A disqualifying benefit is one whose cost, if incurred directly at arm's length, would not itself qualify as a deductible expense of management.
• The restriction applies regardless of whether the benefit comes from the recipient organisation or from any other party.