PART 1Income tax, corporation tax and capital gains tax
CHAPTER 5Miscellaneous
Other provisions
53Site restoration payments
1
In section 168 of ITTOIA 2005 (site restoration payments), at the beginning of subsection (2) insert “
Subject to subsection (3A),
”
.
2
For subsection (3) of that section substitute—
3
The deduction is allowed—
a
(if the payment is made, whether directly or indirectly, to a connected person) for the period of account in which that part of the restoration work to which the payment relates is completed, or
b
(in any other case) for the period of account in which the payment is made.
3A
But no deduction is allowed if the payment arises from arrangements—
a
to which the person carrying on the trade is a party, and
b
the main purpose, or one of the main purposes, of which is to obtain a deduction under this section.
3
At the end of that section insert—
7
Arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
4
In section 145 of CTA 2009 (site restoration payments), at the beginning of subsection (2) insert “
Subject to subsection (3A),
”
.
5
For subsection (3) of that section substitute—
3
The deduction is allowed—
a
(if the payment is made, whether directly or indirectly, to a connected person) for the period of account in which that part of the restoration work to which the payment relates is completed, or
b
(in any other case) for the period of account in which the payment is made.
3A
But no deduction is allowed if the payment arises from arrangements—
a
to which the company carrying on the trade is a party, and
b
the main purpose, or one of the main purposes, of which is to obtain a deduction under this section.
6
At the end of that section insert—
7
Arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
7
The amendments made by this section have effect in relation to any site restoration payment made on or after 21 March 2012, other than a payment made pursuant to an unconditional obligation in a contract made before 21 March 2012.
8
An unconditional obligation is an obligation which may not be varied or extinguished by the exercise of a right (whether or not under the contract).