Section 1161 — Corporation Tax Act 2009: Relief in respect of I minus E basis: ... expenses payable

Relief in respect of I minus E basis: ... expenses payable 1161 1 A company is entitled to relief for an accounting period if conditions A, B and C are met.

2 Condition A is that a major interest in land in the United Kingdom is a management asset of the company.

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 land remediation expenditure in the accounting period in respect of the land .... 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6 The relief is that the company may treat ... the qualifying Chapter 4 expenditure as expenses payable which fall to be brought into account for the accounting period at Step 1 in section 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 basic 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.