CTM15340 - Distributions: general: LEAs, LECs & TECs

A company owned by:

• a Local Enterprise Agency (LEA), or
• a Local Enterprise Company (LEC), or
• a Training and Enterprise Council (TEC),

may make contributions to its parent.

ICTA88/S79 and ICTA88/S79A provide tax relief for contributions made to LEAs, LECs and TECs (BIM47610).

Where:

• a company is a 51% subsidiary of an LEA, LEC or TEC, and
• the LEA, LEC or TEC and the company are bodies corporate, and
• the company makes contributions to the LEA, LEC or TEC,

then ICTA88/S209 (5) operates so that the distributions legislation does not apply to these contributions.

Where the LEA, LEC or TEC is not a body corporate, ICTA88/S209 (5) does not apply. In these circumstances contributions by the company to the LEA, LEC or TEC may give rise to distributions.