Corporation Tax Act 2009 section 1252

Industrial development grants

Section 1252 sets out the corporation tax treatment of industrial development grants received by companies with investment business, specifying when such grants are taxable as income and when they are excluded from the charge.

• Grants received under the Industrial Development Act 1982 or the equivalent Northern Ireland Order 1982 are treated as income subject to corporation tax
• Grants designated as being towards specified capital expenditure, as compensation for lost capital assets, or to cover a corporation tax liability are excluded from this income treatment
• No tax is charged under this section if the grant payment is already accounted for in calculating profits for corporation tax purposes under another provision
• This rule applies specifically to companies with investment business; the corresponding rule for trading companies is found elsewhere in the Act