Part 14Remediation of contaminated F1or derelict land
Chapter 3Land remediation tax credit
Supplementary
1155Payment of tax credit
1
This section applies if a land remediation tax credit for an accounting period is payable to a company.
2
The amount payable in respect of—
a
the land remediation tax credit, or
b
interest on the credit payable under section 826 of ICTA,
may be applied in discharging any liability of the company to pay corporation tax.
3
So far as the amount is so applied, the duty of the officer of Revenue and Customs to pay the credit under section 1151(4) is discharged.
4
Subsection (5) applies if the company's tax return for the accounting period is enquired into by an officer of Revenue and Customs.
5
In that case—
a
no payment in respect of the land remediation tax credit for the period need be made before the officer's enquiries are completed (see paragraph 32 of Schedule 18 to FA 1998), but
b
an officer may make a payment on a provisional basis of such amount as the officer thinks fit.
6
No payment need be made in respect of the land remediation tax credit if the company has outstanding PAYE and NIC liabilities for the period.
7
A company has outstanding PAYE and NIC liabilities for an accounting period if it has not paid to an officer of Revenue and Customs any amount that it is required to pay—
a
under PAYE regulations, or
b
in respect of Class 1 national insurance contributions,
for payment periods ending in the accounting period.
8
“Payment period” means a period—
a
which ends on the 5th day of a month, and
b
for which the company is liable to account for income tax and national insurance contributions to an officer of Revenue and Customs.
1156Tax credit payment not income of company
A payment in respect of a land remediation tax credit is not income of the company for any tax purposes.
1157Exclusion for capital gains purposes of certain expenditure
1
This section applies if in an accounting period a payment is made to a company in respect of a land remediation tax credit.
2
The qualifying land remediation expenditure in respect of which the payment is made is to be treated as if it were excluded by section 39 of TCGA 1992 from the sums allowable under section 38 of that Act.
1158Restriction on losses carried forward where tax credit claimed
1
For the purposes of F6section 62 of CTA 2010 (relief for losses made in UK property business) a company's UK property business loss for an accounting period in which it claims a land remediation tax credit to which it is entitled is treated as reduced by the amount of the surrendered loss for the period.
C12
For the purposes of F3F4sections 45, 45A and 45B of CTA 2010 (relief of trading losses against future F2... profits) a company's trading loss for an accounting period in which it claims a land remediation tax credit to which it is entitled is treated as reduced by the amount of the surrendered loss for the period.
3
Subsection (4) applies (instead of subsection (1)) if in an accounting period—
F8a
as a result of section 87(3) of FA 2012, a company's UK property business loss is treated for the purposes of section 76 of that Act as a deemed BLAGAB management expense for the accounting period,
b
an amount falls to be carried forward to a subsequent accounting period under F7section 73 of FA 2012 (unrelieved expenses carried forward), and
c
the company claims a land remediation tax credit for the period.
4
The amount which falls to be carried forward to a subsequent accounting period under F5section 73 of FA 2012 is treated as reduced by the amount of the surrendered loss for the period.
C25
References in this section to “the amount of the surrendered loss” for an accounting period are to the amount of any qualifying land remediation loss in respect of which a land remediation tax credit is claimed for the period.
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