Section 1244A | Contributions to flood and coastal erosion risk management projects ^F1

(1)This section applies if a company with investment business (“the contributor”) incurs expenses in making a qualifying contribution to a qualifying flood or coastal erosion risk management project.^F1

(2)The expenses are treated for the purposes of Chapter 2 as expenses of management.^F1

(3)But if, in connection with the making of the contribution, the contributor or a connected person—^F1

(a)receives a disqualifying benefit, or^F1

(b)is entitled to receive such a benefit,^F1

no deduction is allowed under section 1219.

(4)For the purposes of subsection (3) it does not matter whether a person receives, or is entitled to receive, the benefit—^F1

(a)from the carrying out of the project, or^F1

(b)from any person.^F1

(5)In this section “disqualifying benefit” means a benefit consisting of money or other property, but it does not include—^F1

(a)a refund of the contribution, if the contribution is a sum of money;^F1

(b)compensation for the contribution, if the contribution is the provision of services;^F1

(c)a structure that—^F1

(i)is or is to be used for the purposes of flood or coastal erosion risk management, and^F1

(ii)is put in place in carrying out the project;^F1

(d)an addition to a structure where—^F1

(i)the structure is or is to be used for the purposes of flood or coastal erosion risk management, and^F1

(ii)the addition is made in carrying out the project;^F1

(e)land, plant or machinery that is or is to be used, in the realization of the project, for the purposes of flood or coastal erosion risk management;^F1

(f)a right over land that is or is to be used, in the realization of the project, for the purposes of flood or coastal erosion risk management.^F1

(6)In subsection (5) “structure” includes road, path, pipe, earthwork, plant and machinery.^F1

(7)Section 86B applies for the purposes of this section as it applies for the purposes of section 86A.^F1