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Legislation
Income Tax (Trading and Other Income) Act 2005

Crossheading Supplementary

  • Section 603 Contributions to expenditure
  • Section 604 Contributions not made by public bodies nor eligible for tax relief
  • Section 605 Exchanges
  • Section 606 Apportionment where property sold together
  • Section 607 Questions about apportionments affecting two or more persons
  • Section 608 Meaning of “capital sums” etc.
  1. Supplementary
  2. Contributions not made by public bodies nor eligible for tax relief

Section 604 | Contributions not made by public bodies nor eligible for tax relief

From legislation.gov.uk

(1)A person (“A”) is to be regarded as having incurred expenditure (despite section 603(1)) so far as the requirements in subsections (2) and (3) are met in relation to the expenditure.

(2)The first requirement is that the person meeting A's expenditure (“B”) is not a public body.

(3)The second requirement is that—

(a)no allowance can be made under Chapter 2 of Part 11 of CAA 2001 (contribution allowances) in respect of B's expenditure, and

(b)the expenditure is not allowed to be deducted in calculating the profits of a trade, profession or vocation carried on by B.

(4)When determining for the purposes of subsection (3)(a) whether such an allowance can be made, assume that B is within the charge to tax.

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