Section 1149 — Corporation Tax Act 2009: Additional deduction for qualifying land remediation expenditure

Additional deduction for qualifying land remediation expenditure 1149 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 a 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.

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, 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.