SCHEDULE 5 continued
a refund of the contribution, if the contribution is a sum of
compensation for the contribution, if the contribution is the
provision of services;
(c) a structure that—
is or is to be used for the purposes of flood or coastal
erosion risk management, and
(ii) is put in place in carrying out the project;
(d) an addition to a structure where—
the structure is or is to be used for the purposes of
flood or coastal erosion risk management, and
(ii) the addition is made in carrying out the project;
land, plant or machinery that is or is to be used, in the
realization of the project, for the purposes of flood or coastal
erosion risk management;
a right over land that is or is to be used, in the realization of
the project, for the purposes of flood or coastal erosion risk
In subsection (5) “structure” includes road, path, pipe, earthwork,
plant and machinery.
Section 86B applies for the purposes of this section as it applies for
the purposes of section 86A.”
In Chapter 5 of Part 16 of CTA 2009 (investment business: receipts), after
section 1253 insert—
(1) This section applies if—
a deduction has been made under section 1219 by virtue of
section 1244A (contributions to flood and coastal erosion risk
management projects: expenses of management), and
(b) the contributor or a connected person receives—
a refund of any part of the contribution, if the
contribution is a sum of money, or
Finance (No. 2) BillPage 178
compensation for any part of the contribution, if the
contribution is the provision of services,
in money or money’s worth.
The contributor is to be treated as receiving, when the refund or
compensation is received, an amount—
which is equal to so much of the refund or compensation, or
so much of the value of the refund or compensation, as is not
otherwise taken into account for corporation tax purposes,
(b) to which the charge to corporation tax on income applies.”
In section 253 of CAA 2001 (companies with investment business), in
subsection (6), after “1233” insert “or 1244A”.
The amendments made by this Schedule have effect in relation to
contributions paid or provided on or after 1 January 2015.
In Part 5B of ITA 2007 (tax relief for social investments), after section 257MV
The Treasury may by regulations add to, repeal or otherwise amend
any provision of sections 257MQ to 257MT (excluded activities).
(2) Regulations under this section may—
(a) make different provision for different cases or purposes;
contain incidental, supplemental, consequential and
transitional provision and savings.
So far as they cause an activity to cease to be an excluded activity,
amendments made by regulations under this section may have effect
in relation to times before they come into force, but not times before
6 April 2015.
This section is without prejudice to any other power to amend any
provision of this Part.”
Finance (No. 2) BillPage 179
section 198A (excluded activities for purposes of Part 5 (and, by
virtue of section 257DA(9), Part 5A): subsidised generation or export
of electricity), and
section 198B (excluded activities for those purposes: subsidised
generation of heat and subsidised production of gas or fuel).
3 In section 198A—
in subsection (3), omit “or” at the end of paragraph (b) and for
paragraph (c) substitute—
a contract for difference has been entered into in
connection with the generation of the electricity, or
a scheme established in a territory outside the United
corresponds to one set out in a renewables
obligation order under section 32 of the
Electricity Act 1989, or
is similar to one established by virtue of
regulations under Chapter 2 of Part 2 of the
Energy Act 2013 (contracts for difference),
operates to incentivise the generation of the
(b) in subsection (9), at the appropriate place insert—
““contract for difference” means a contract for difference
within the meaning of Chapter 2 of Part 2 of the
Energy Act 2013 (see section 6(2) of that Act);”.
4 (1) In section 198A—
in subsection (5), omit “, B or C” (exceptions for generation involving
anaerobic digestion and hydroelectric power),
(b) omit subsections (7) and (8), and
(c) in subsection (9), omit the definition of “anaerobic digestion”.
(2) In section 198B—
in subsection (3), omit “or B” (exception for generation or production
involving anaerobic digestion), and
(b) omit subsection (5).
The amendments made by this Part of this Schedule have effect in relation
to shares issued on or after 6 April 2015.