Section 1252 | Industrial development grants

(1)If a company with investment business 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)),

the payment is to be treated as an amount to which the charge to corporation tax on income applies.

(2)Subsection (1) does not apply if—

(a)the grant is designated as made towards the cost of specified capital expenditure,

(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).

(3)Tax is not charged under this section if the payment is taken into account (under another provision) in calculating profits for corporation tax purposes.