Income Tax (Trading and Other Income) Act 2005 section 86B

Interpretation of section 86A

Section 86B defines what counts as a "qualifying project" and a "qualifying contribution" for the purpose of the tax deduction available under section 86A for contributions to flood and coastal erosion risk management projects.

• A flood or coastal erosion risk management project is a qualifying project only if the Environment Agency has allocated grant-in-aid funding to it, and either an English risk management authority has applied for a grant to fund it or the Environment Agency has decided to carry it out itself.
• A contribution qualifies if it is made for the purposes of the project under a formal agreement between the contributor and the relevant authority (either the applicant authority or the Environment Agency), possibly also involving other parties.
• A "contribution" can be either a sum of money paid during the period of account or services provided during that period — so in-kind support counts as well as cash.
• The meanings of "flood risk management project", "coastal erosion risk management project" and "English risk management authority" are all drawn from the Flood and Water Management Act 2010.