Part 14Remediation of contaminated F1or derelict land
Chapter 2Reliefs for expenditure on contaminated F4or derelict land
Words 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
1149Additional deduction for qualifying land remediation expenditure
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 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.
F33
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.
Words in Pt. 14 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. 2