Corporation Tax Act 2009 section 84

Approval of local enterprise agencies

Section 84 sets out the conditions that must be met before the relevant national authority can approve a body as a local enterprise agency, allowing contributions to it to qualify as tax-deductible under section 82.

• A body can be approved as a local enterprise agency regardless of its legal status, structure, or name, provided two key conditions are satisfied.
• The body's sole aim must be promoting local enterprise, or if that is only one of its main aims, it must maintain a separate fund dedicated solely to that purpose — where "local enterprise" means industrial and commercial activity in a particular UK area, especially encouraging the formation and development of small businesses.
• The body must be prevented from paying or transferring any of its income or profit, directly or indirectly, to its members or to anyone who controls or directs its affairs.
• Reasonable payments for goods, services, labour, power, interest on loans, or rent for premises are not treated as prohibited transfers of income or profit.