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Corporation Tax Act 2009, Chapter 2 is up to date with all changes known to be in force on or before 25 December 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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Textual Amendments
F1Words in Pt. 14 Ch. 2 heading inserted (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by Finance Act 2009 (c. 10), Sch. 7 para. 8
(1)A company is entitled to relief for an accounting period if conditions A, B and C are met.
(2)Condition A is that [F2a major interest in] land in the United Kingdom is, or has been, acquired by the company for the purposes of a UK property business or a trade carried on by it.
[F3(3)Condition B is that—
(a)in the case of land in a contaminated state, the land was in a contaminated state at the time of the acquisition, and
(b)in the case of land in a derelict state, the land was in a derelict state throughout the period beginning with the earlier of—
(i)1 April 1998, and
(ii)the date on which a major interest in the land was first acquired by the company or a person who was connected with the company.
(3A)The Treasury may by order—
(a)specify circumstances in which the condition in paragraph (a) of subsection (3) need not be met, or
(b)replace the date for the time being specified in paragraph (b)(i) of that subsection with a later date.
(3B)An order under subsection (3A) may contain incidental, supplemental, consequential and transitional provision and savings.]
(4)Condition C is that the company incurs capital expenditure which is qualifying land remediation expenditure in respect of the land.
(5)For the company to obtain the relief it must make an election.
(6)The relief is that for corporation tax purposes the capital expenditure is allowed as a deduction in calculating the profits of the UK property business or the trade for the period in which the expenditure is incurred.
(7)For the purposes of this section capital expenditure incurred for the purposes of a UK property business or a trade by a company about to carry on the business or trade is to be treated as incurred by the company—
(a)on the first day on which it does carry it on, and
(b)in the course of doing so.
(8)Relief is not available under this section in relation to so much of the qualifying land remediation expenditure as represents capital expenditure in respect of which an allowance[F4, other than an allowance under Part 2A of CAA 2001 (structures and buildings allowances),] has been, or may be, made under the enactments relating to capital allowances.
Textual Amendments
F2Words in s. 1147(2) inserted (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by Finance Act 2009 (c. 10), Sch. 7 para. 9(2)
F3S. 1147(3)-(3B) substituted for s. 1147(3) (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by Finance Act 2009 (c. 10), Sch. 7 para. 9(3)
F4Words in s. 1147(8) inserted (5.7.2019) by The Capital Allowances (Structures and Buildings Allowances) Regulations 2019 (S.I. 2019/1087), regs. 1, 7(2)
Modifications etc. (not altering text)
C1S. 1147(7) excluded (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 35, 47(2) (with Sch. 5 para. 36)
(1)An election under section 1147 must specify the accounting period in respect of which it is made.
(2)The election must be made by notice in writing to an officer of Revenue and Customs.
(3)The notice must be given before the end of the period of two years beginning immediately after the end of the accounting period to which the election relates.
(1)A company is entitled to corporation tax relief for an accounting period if each of conditions A to D is met.
(2)Condition A is that [F5a major interest in] land in the United Kingdom is, or has been, acquired by the company for the purposes of a UK property business or a trade carried on by it.
[F6(3)Condition B is that—
(a)in the case of land in a contaminated state, the land was in a contaminated state at the time of the acquisition, and
(b)in the case of land in a derelict state, the land was in a derelict state throughout the period beginning with the earlier of—
(i)1 April 1998, and
(ii)the date on which a major interest in the land was first acquired by the company or a person who was connected with the company.
(3A)The Treasury may by order—
(a)specify circumstances in which the condition in paragraph (a) of subsection (3) need not be met, or
(b)replace the date for the time being specified in paragraph (b)(i) of that subsection with a later date.
(3B)An order under subsection (3A) may contain incidental, supplemental, consequential and transitional provision and savings.]
(4)Condition C is that the company carries on a UK property business or a trade in the accounting period.
(5)Condition D is that the company incurs qualifying land remediation expenditure in respect of the land which is allowable as a deduction in calculating for corporation tax purposes the profits of the business or the trade for the period.
(6)For the company to obtain the relief it must make a claim.
(7)The relief is an additional deduction in calculating the profits of the business or the trade for the period.
(8)The amount of the additional deduction is 50% of the qualifying land remediation expenditure.
Textual Amendments
F5Words in s. 1149(2) inserted (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by Finance Act 2009 (c. 10), Sch. 7 para. 10(2)
F6S. 1149(3)-(3B) substituted for s. 1149(3) (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by Finance Act 2009 (c. 10), Sch. 7 para. 10(3)
[F8(1)]A company is not entitled to relief under this Chapter in respect of expenditure on land all or part of which is in a contaminated [F9or derelict state if the land is in a contaminated or derelict] state wholly or partly as a result of any thing done, or omitted to be done, at any time by—
(a)the company, or
(b)a person with a relevant connection to the company (see section 1178).
[F10(2)A company is not entitled to relief under this Chapter in respect of expenditure on land all or part of which is in a contaminated or derelict state if—
(a)the land is in that state wholly or partly as a result of any thing done, or omitted to be done, by a person not within subsection (1), and
(b)that person, or a person connected with that person, has a relevant interest in the land.
(3)For the purposes of subsection (2) a person has a relevant interest in land if the person—
(a)holds any interest in, right over or licence to occupy the land (including an option to acquire any such interest, right or licence in any circumstances), or
(b)has disposed of any estate or interest in the land for a consideration that to any extent reflects the impact, or likely impact, on the value of the land of the remediation of its contamination or dereliction.]
Textual Amendments
F7Words in s. 1150 heading inserted (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by Finance Act 2009 (c. 10), Sch. 7 para. 11(5)
F8S. 1150(1): s. 1150 renumbered as s. 1150(1) (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by Finance Act 2009 (c. 10), Sch. 7 para. 11(2)
F9Words in s. 1150(1) substituted (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by Finance Act 2009 (c. 10), Sch. 7 para. 11(3)
F10S. 1150(2)(3) inserted (with effect in accordance with Sch. 7 paras. 27, 28 of the amending Act) by Finance Act 2009 (c. 10), Sch. 7 para. 11(4)
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