536(1) A person (“R”) is to be regarded as having incurred expenditure (despite section 532(1)) to the extent that the requirements in subsections (2) and (3) are satisfied in relation to the expenditure (but see subsection (6)).
536(2) The first requirement is that the person meeting R’s expenditure (“C”) is not a public body.
536(3) The second requirement is that–
(a)no allowance can be made under Chapter 2 in respect of C’s expenditure, and
(b)the expenditure is not allowed to be deducted in calculating the profits of a trade or relevant activity carried on by C.