»Ê¹ÚÌåÓýapp

Example 1

»Ê¹ÚÌåÓýapp proprietor of a seafront guesthouse who lives in the guesthouse all year round makes a cash contribution of £10,000 to a flood management project whose objective is to erect new flood defences along the seafront, including in front of their property. It is agreed in this case that the contribution is a qualifying contribution to a qualifying project and that there are no disqualifying benefits.

»Ê¹ÚÌåÓýapp contribution is an allowable deduction. Whilst, under normal trading rules, the expenditure could potentially be disallowed as being both capital in nature and also incurred partly for the non-business purpose of protecting the proprietor’s domestic accommodation, as the conditions are satisfied a deduction is allowed under this specific provision.

Example 2

A property development company wishes to acquire land that is owned by the local authority for the purposes of its property development business. »Ê¹ÚÌåÓýapp market value of the land is £50,000. »Ê¹ÚÌåÓýapp company agrees with the local authority that in return for its making of a cash donation of £50,000 to a flood management project the authority will transfer the land to the company for no consideration. It is agreed in this case that the contribution is a qualifying contribution to a qualifying project.

»Ê¹ÚÌåÓýapp contribution is not allowable. »Ê¹ÚÌåÓýapp land received by the developer in exchange for the contribution made is a disqualifying benefit.