CA14300 - General: Contributions: Contributions that are repaid

ESC/B49

The recipient of a grant may repay all or part of it. If they do there is nothing in the legislation that lets them claim capital allowances on their true net expenditure.

ESC/B49 was introduced to deal with some such circumstances.

It lets a person who has repaid all or part of a grant that has been deducted from expenditure qualifying for capital allowances claim capital allowances on the amount repaid if:

• the grant was made by the Crown, any Government or any other public or local authority, or
• the repaid grant is taxable in the hands of the person who made the grant as a balancing adjustment or a revenue receipt.

These are the only cases where a person repaying all or part of a grant may be given capital allowances on the amount repaid. In all other cases you should refuse to give capital allowances on a grant repaid because there is nothing in the legislation to give them.