Part 14Remediation of contaminated land
Chapter 4Special provision for life assurance business
Relief for qualifying Chapter 4 expenditure
1161Relief in respect of I minus E basis: enhanced expenses payable
1
A company is entitled to relief for an accounting period if conditions A, B and C are met.
2
Condition A is that land in the United Kingdom is a management asset of the company.
3
Condition B is that at the time of acquisition of the land by the company all or part of the land is or was in a contaminated state (see section 1145).
4
Condition C is that the company incurs qualifying Chapter 4 expenditure in the accounting period in respect of the land (see section 1162).
5
For the company to obtain the relief it must make a claim.
6
The relief is that the company may treat 150% of the qualifying Chapter 4 expenditure as expenses payable which fall to be brought into account for the accounting period at Step 1 in section 76(7) of ICTA (deduction for expenses payable).
7
For the purposes of this section land is a management asset of a company if it is—
a
an asset provided for use or used for the management of life assurance business carried on by the company, or
b
an asset in respect of which expenditure is being incurred with a view to such use by the company.
1162Meaning of “qualifying Chapter 4 expenditure”
For the purposes of this Chapter a company's “qualifying Chapter 4 expenditure” in an accounting period means—
a
its qualifying land remediation expenditure in the period, less
b
the amount (if any) which as a result of paragraph (a) of Step 1 in section 76(7) of ICTA is not to be brought into account at that step as expenses payable for the period.
1163No relief if company responsible for contamination
A company is not entitled to relief under section 1161 in respect of expenditure on land all or part of which is in a contaminated state if the land is in that 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).