Corporation Tax Act 2009

84Approval of local enterprise agenciesU.K.
This section has no associated Explanatory Notes

(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).