Corporation Tax Act 2009 Explanatory Notes

Section 926: Contributions to expenditure

2341.This section restricts expenditure allowable under section 910, section 913 and section 924 to the extent that the expenditure is met by a public body or someone other than the company. It is based on section 532 of ICTA and section 532 of CAA. The corresponding rule for income tax is in section 603 of ITTOIA.

2342.Subsection (3) is new and excludes the application of this section to incidental expenses incurred by the seller of patent rights (see section 913(2)(b)). This is because section 524 of ICTA only bites in the first place on the net proceeds of a sale.

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