PART 1

Income tax, corporation tax and capital gains tax

Coronavirus support payments etc

Deduction where business rates etc repaid
33
1
This section applies if—
a
a person (“A”) carrying on a business would, but for a coronavirus support arrangement, have incurred a liability to pay a charge to a public authority,
b
an expense incurred in discharging that liability would have been deductible in calculating the profits of the business for the purposes of income tax or corporation tax, and
c
an amount in respect of some or all of that liability is paid to that or any other public authority.
2
In calculating the profits of the business of A for those purposes—
a
a deduction is allowed for the amount paid, and
b
that amount is treated as if it had been paid in the period in which the charge would have been due and payable.
3
No deduction is otherwise allowed for the amount paid in calculating the profits of the business of any person for those purposes (including where the amount was paid by a person other than A).
4
For the purposes of this section “coronavirus support arrangement” means an arrangement where—
a
a liability in respect of non-domestic rates, or
b
such other liability in respect of a charge payable to a public authority as may be specified in regulations made by the Treasury,
is waived, or reduced, for purposes connected with the provision of support to businesses in connection with coronavirus.
5
Regulations under subsection (4)(b) may have retrospective effect.
6
In this section “coronavirus” has the meaning it has in the Coronavirus Act 2020 (see section 1 of that Act).
7
This section has effect in relation to payments whether made before or after the passing of this Act.