BIM45110 | Specific deductions: Flood and erosion projects: Qualifying contributions

S86B (3) Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005)

S86B (3) Corporation Tax Act 2009 (CTA 2009)

For the purposes of this legislation, a contribution in relation to a period of account (for ITTOIA 2005) or accounting period (for CTA 2009) means either –

• a sum of money paid in that period, or

• any services provided in that period

Examples of services provided may include where the business provides labour for a flood defence project, or agrees to maintain the flood defence.

A contribution to a flood or coastal erosion risk management project is a qualifying contribution if the contribution is

• made for the purposes of the project, and

• is made under an agreement between:

(a) the person making the contribution, and

(b) the applicant authority or (as the case may be) the Environment Agency, or between those two persons and other persons.