Part 14Remediation of contaminated F1or derelict land
Chapter 6Supplementary
1175F2Connected sub-contractors
1
This section applies if—
a
a company makes a sub-contractor payment,
b
the company and the sub-contractor are connected, and
c
in accordance with generally accepted accounting practice, the whole of the sub-contractor payment and all of the sub-contractor's relevant expenditure have been brought into account in determining the sub-contractor's profit or loss for a relevant period.
F51A
In this section, a “sub-contractor payment” means a payment made by the company to the sub-contractor in respect of relevant land remediation contracted out by the company to the sub-contractor.
2
The amount of the sub-contractor payment which is “qualifying expenditure on F4connected sub-contracted land remediation” for the purposes of section 1144(5) is—
a
the entire payment, or
b
if less, an amount equal to the sub-contractor's relevant expenditure.
3
“Relevant expenditure” of the sub-contractor means expenditure that—
a
is incurred by the sub-contractor in carrying on F6or arranging for carrying on, on behalf of the company, the activities to which the sub-contractor payment relates,
b
is not of a capital nature,
c
is F3in respect of staffing costs or materials, and
d
is not subsidised.
4
“Relevant period” means a period—
a
for which accounts are drawn up for the sub-contractor, and
b
that ends not more than 12 months after the end of the company's period of account in which the sub-contractor payment is, in accordance with generally accepted accounting practice, brought into account in determining the company's profit or loss.
5
In the following sections, which apply for the purpose of determining whether a sub-contractor's expenditure meets the requirements of subsection (3)(c) and (d)—
a
section 1170 (staffing costs), and
b
section 1177 (subsidised expenditure),
references to a company are to be read as references to the sub-contractor.
6
Any apportionment of expenditure of the company or the sub-contractor necessary for the purposes of this section is to be made on a just and reasonable basis.
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