Section 251 — Corporation Tax Act 2009: Deduction for expenditure on energy-saving items

Deduction for expenditure on energy-saving items 251 1 This section applies if—

a a company carries on a property business in relation to land which consists of or includes a dwelling-house, b the company incurs expenditure in acquiring and installing an energy-saving item in the dwelling-house or in a building containing the dwelling-house (see subsections (5) to (7)),

c the expenditure is incurred before 1 April 2015, d a deduction for the expenditure is not prohibited by the wholly and exclusively rule but would otherwise be prohibited by the capital prohibition rule (see subsection (8)),

and e no allowance under CAA 2001 may be claimed in respect of the expenditure.

2 In calculating the profits of the business, a deduction for the expenditure is allowed.

3 But any deduction is subject to—

a section 252 (restrictions on relief),

and b any provision made by regulations under section 253.

4 If, on a just and reasonable apportionment of any expenditure, part of the expenditure would qualify for the relief (but the remainder would not), a deduction is allowed for that part. 5 “ Energy-saving item ” means an item of an energy-saving nature of such description as is for the time being specified in regulations made by the Treasury.

6 The Treasury may by regulations provide for an item to be an energy-saving item only if it satisfies such conditions as may be—

a specified in, or b determined in accordance with, the regulations.

7 The conditions may include conditions imposed by reference to information or documents issued by any body, person or organisation.

8 In this section— “ the capital prohibition rule ” means the rule in section 53 (capital expenditure), as applied by section 210, and “ the wholly and exclusively rule ” means the rule in section 54 (expenses not wholly and exclusively for trade and unconnected losses), as applied by section 210.