Commentary

B5.116 Repayable grants

Business tax
Business tax | Commentary

B5.116 Repayable grants

Business tax | Commentary

B5.116 Repayable grants

Where any expenditure by a farmer is met out of a grant or subsidy, it is generally not regarded as having been incurred, either for the purposes of capital allowances1 or for capital gains tax. Northern Ireland regional development grants made under an agreement before 31 March 2003 represent one exception to this rule, see B3.111.

However, the question arises as to the treatment where expenditure on an asset has been met out of a grant or subsidy and that grant is later repaid for some reason. Where the expenditure met out of grant would otherwise fall to

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