Section 105 | Industrial development grants

(1)This section applies if a person carrying on a trade receives a payment by way of a grant under—

(a)section 7 or 8 of the Industrial Development Act 1982 (c. 52), or

(b)Article 7, 9 or 30 of the Industrial Development (Northern Ireland) Order 1982 (S.I. 1982/1083 (N.I. 15)).

(2)The payment is brought into account as a receipt in calculating the profits of the trade unless—

(a)the grant is designated as made towards the cost of specified capital expenditure, (but see subsection (2A))^F1

(b)the grant is designated as compensation for the loss of capital assets, or

(c)the grant is for all or part of a corporation tax liability (including one that has already been met).

(2A)Subsection (2)(a) is to be disregarded in calculating the profits of a trade on the cash basis.^F2

(3)This section does not apply to professions or vocations.