Part 2

Trading income
Chapter 5

Trade profits: rules allowing deductions

Contributions to flood and coastal erosion risk management projects

Interpretation of section 86A
86B
1
This section applies for the purposes of section 86A.
2
A flood or coastal erosion risk management project is a qualifying project if—
a
an English risk management authority has applied to the Environment Agency for a grant under section 16 of the Flood and Water Management Act 2010 in order to fund the project, or
b
the Environment Agency has determined that it will carry out the project,
and the Environment Agency has allocated funding by way of grant-in-aid to the project.
3
A contribution to a flood or coastal erosion risk management project is a qualifying contribution if the contribution is made—
a
for the purposes of the project, and
b
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.
4
References to a flood risk management project or a coastal erosion risk management project are to be interpreted in accordance with sections 1 to 3 of the Flood and Water Management Act 2010.
5
In section 86A and this section—
- “
contribution
”, in relation to a period of account, means—
  1. a sum of money paid in that period of account, or
  2. any services provided in that period of account;
- “
English risk management authority
” has the meaning given by section 6(14) of the Flood and Water Management Act 2010.
Ss. 86A, 86B and cross-heading inserted (with effect in accordance with Sch. 5 para. 9 of the amending Act) by Finance Act 2015 (c. 11), Sch. 5 para. 1