Corporation Tax Act 2009

1147 Deduction for capital expenditure

(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, or has been, acquired by the company for the purposes of a UK property business or a trade carried on by it.

(3) Condition B is that at the time of the acquisition all or part of the land is or was in a contaminated state.

(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 has been, or may be, made under the enactments relating to capital allowances.