Corporation Tax Act 2009 section 86B

Interpretation of section 86A

Section 86B defines the key terms used in section 86A, which allows tax deductions for contributions to flood and coastal erosion risk management projects, including what makes a project and a contribution "qualifying".

• A flood or coastal erosion risk management project is a "qualifying project" if an English risk management authority has applied to the Environment Agency for a grant under the Flood and Water Management Act 2010 (or the Environment Agency has decided to carry out the project itself), and the Environment Agency has allocated grant-in-aid funding to the project.
• A "qualifying contribution" is one made for the purposes of the project under a formal agreement between the contributing company and either the applicant authority or the Environment Agency (and potentially other parties).
• A "contribution" means either a sum of money paid during the accounting period or services provided during that period — so both cash and in-kind support can qualify.
• The terms "flood risk management project" and "coastal erosion risk management project" take their meaning from sections 1 to 3 of the Flood and Water Management Act 2010, and "English risk management authority" is defined by section 6(14) of that Act.