Corporation Tax Act 2009

Relief for qualifying Chapter 4 expenditure

1161 Relief in respect of I minus E basis: enhanced expenses payable

(1) A company is entitled to relief for an accounting period if conditions A, B and C are met.

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

(3) Condition B is that at the time of acquisition of the land by the company all or part of the land is or was in a contaminated state (see section 1145).

(4) Condition C is that the company incurs qualifying Chapter 4 expenditure in the accounting period in respect of the land (see section 1162).

(5) For the company to obtain the relief it must make a claim.

(6) The relief is that the company may treat 150% of 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(7) of ICTA (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 life assurance 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.

1162 Meaning of “qualifying Chapter 4 expenditure”

For the purposes of this Chapter a company’s “qualifying Chapter 4 expenditure” in an accounting period means—

(a) its qualifying land remediation expenditure in the period, less

(b) the amount (if any) which as a result of paragraph (a) of Step 1 in section 76(7) of ICTA is not to be brought into account at that step as expenses payable for the period.

1163 No relief if company responsible for contamination

A company is not entitled to relief under section 1161 in respect of expenditure on land all or part of which is in a contaminated state if the land is in that state wholly or partly as a result of any thing done, or omitted to be done, at any time by—

(a) the company, or

(b) a person with a relevant connection to the company (see section 1178).