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If a person is carrying on a trade, even where a deduction would not otherwise be available, the person can claim a deduction in respect of expenses incurred in making a contribution to either:

1. Ìý

   (a)ÌýÌýÌýÌý a local enterprise organisation, or

2. Ìý

   (b)ÌýÌýÌýÌý in respect of contributions made after 31 March 2003, an urban regeneration company

A deduction would not normally be available for this type of expenditure as it is not wholly and exclusively incurred for the purposes of the trade from which the payment is made.

Such a contribution may be in cash or in kind¹.

However, the deduction is restricted if the contributor (or a connected person) either:

1. Ìý

   •ÌýÌýÌýÌý receives what is referred to as a 'disqualifying' benefit or

2. Ìý

   •ÌýÌýÌýÌý is entitled to receive a disqualifying benefit

Such benefits need not be received (or receivable) from the local enterprise organisation or the urban regeneration company, the restriction will bite if the benefit is received from anyone.

Where the deduction is restricted,