C1Part 3Trading income

Annotations:
Modifications etc. (not altering text)

Chapter 5Trade profits: rules allowing deductions

Contributions to local enterprise organisations or urban regeneration companies

84Approval of local enterprise agencies

1

The relevant national authority may approve a body as a local enterprise agency for the purposes of section 82 only if conditions A and B are met.

2

But if those conditions are met, the body may be approved—

a

whatever its status or structure, and

b

even if it is not described as a local enterprise agency.

3

Condition A is that the relevant national authority is satisfied—

a

that the body's sole aim is the promotion or encouragement of local enterprise, or

b

that one of the body's main aims is the promotion or encouragement of local enterprise and that it has or is about to have a separate fund for the sole purpose of pursuing that aim.

4

For this purpose “local enterprise” means industrial and commercial activity or enterprise in a particular area in the United Kingdom, with particular reference to encouraging the formation and development of small businesses.

5

Condition B is that the body is precluded from paying or transferring any of its income or profit directly or indirectly—

a

to any of its members, or

b

to any person charged with the control and direction of its affairs.

6

The payment of—

a

reasonable remuneration for goods, labour or power supplied or for services provided,

b

reasonable interest on money lent, or

c

reasonable rent for premises,

does not count as a payment or transfer of income or profit for the purposes of subsection (5).