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HMRC internal manual

Business Income Manual

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. a sum of money paid in that period, or

     b. 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

     a. made for the purposes of the project, and

     b. is made under an agreement between

            i. the person making the contribution, and

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