Part 14Remediation of contaminated or derelict land

Chapter 4Special provision for BLAGAB

Relief ...

1161Relief in respect of I minus E basis: F1... 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 F2a major interest in land in the United Kingdom is a management asset of the company.

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 by the company of a major interest in the land, 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 qualifying F4land remediation expenditure in the accounting period in respect of the land F5....

F6(5)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)

The relief is that the company may treat F7... the qualifying Chapter 4 expenditure as expenses payable which fall to be brought into account for the accounting period at Step 1 in F8section 76 of FA 2012 (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 F9basic life assurance and general annuity 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.