Distributions: general: LEAs, LECs & TECs
CTA09/S82 provides tax relief for contributions made to LEAs, LECs and TECs - seeBIM47610.
A company owned by:
- a Local Enterprise Agency (LEA), or
- a Local Enterprise Company (LEC), or
- a Training and Enterprise Council (TEC),
may make contributions to its parent which may be treated as distributions.
CTA09/S82 provides tax relief for contributions made to LEAs, LECs and TECs (BIM47610).
For contributions made before 17 July 2012, CTA/S1002 and S1021 prevented distribution treatment applying where
- a company is a 51% subsidiary of an LEA, LEC or TEC, and
- the LEA, LEC or TEC and the company are bodies corporate, and
- the company makes contributions to the LEA, LEC or TEC.
This prevention did not however apply where the LEA, LEC or TEC was not a body corporate. For contributions made on or after 17 July 2012, CTA10/S1002 and S1021 are repealed and contributions by the company to the LEA, LEC or TEC may give rise to distributions in all cases.