Part 14Remediation of contaminated or derelict land
Chapter 4Special provision for BLAGAB
F1BLAGAB company tax credits
1164Entitlement to tax credit
(1)
(2)
(3)
The amount of F6a BLAGAB tax credit to which the company is entitled is determined in accordance with section 1166.
(4)
See also section 1168, which restricts the carry forward of expenses payable where a company claims F7a BLAGAB tax credit.
1165Meaning of F8“qualifying BLAGAB loss”
(1)
For the purposes of this Chapter a company has a F9“qualifying BLAGAB loss” in an accounting period (“the relevant accounting period”) if in the period—
(a)
it is entitled to relief under section 1161 F10or 1162, and
(b)
an amount falls to be carried forward to a subsequent accounting period under F11section 73 of FA 2012 as excess BLAGAB expenses.
(2)
In determining for the purposes of subsection (1)(b) whether there is an amount which falls to be carried forward to a subsequent accounting period under F12section 73 of FA 2012 as excess BLAGAB expenses, no account is to be taken of the amounts specified in subsection (3).
(3)
Those amounts are amounts—
(a)
brought forward from an earlier accounting period, and
F13(b)
taken into account in calculating for the purposes of section 73 of FA 2012 the amount of adjusted BLAGAB management expenses of the company for the relevant accounting period as a result of—
(i)
the previous application of section 73 or 93 of FA 2012, or
(ii)
the carry forward to the relevant accounting period of an amount under section 391 of this Act (surplus deficit).
(4)
The amount of the F14qualifying BLAGAB loss is—
(a)
the amount which falls to be carried forward as mentioned in subsection (1)(b), or
(b)
if less, 150% of the qualifying Chapter 4 expenditure in respect of which the relief was obtained.
1166Amount of tax credit
(1)
(2)
The Treasury may by order replace the percentage for the time being specified in subsection (1) with a different percentage.
(3)
An order under subsection (2) may contain incidental, supplemental, consequential and transitional provision and savings.
1167Payment of tax credit etc
(1)
The provisions mentioned in subsection (2) have effect in relation to F17a BLAGAB tax credit subject to the modifications set out in subsection (3).
(2)
The provisions referred to in subsection (1) are—
section 1151(4) (payment of tax credit by officer of Revenue and Customs);
section 1155 (supplementary provision about payment of tax credit);
section 1156 (tax credit payment not income of company);
section 1157 (qualifying expenditure excluded for capital gains purposes).
(3)
The modifications referred to in subsection (1) are as follows—
(a)
for any reference to a land remediation tax credit substitute a reference to F18a BLAGAB tax credit, and
(b)
in section 1157(2) for the reference to qualifying land remediation expenditure substitute a reference to qualifying Chapter 4 expenditure.
1168Restriction on carrying forward expenses payable where tax credit claimed
(1)
This section applies if a company claims F19a BLAGAB tax credit to which it is entitled for an accounting period.
(2)
For the purposes of F20section 73 of FA 2012 the amount which may be—
(a)
carried forward from the accounting period under F21that section as excess BLAGAB expenses, and
(b)
brought into account in accordance with F22step 5 in section 76 of FA 2012,
is treated as reduced by the amount of the surrendered loss for the period.
(3)
The “amount of the surrendered loss” for the period means the amount of the F23qualifying BLAGAB loss in respect of which the land remediation tax credit is claimed for the period.