142Deduction for site preparation expenditureU.K.
(1)This section applies for the purpose of calculating the profits of a trade of a period of account in which waste materials are deposited on a waste disposal site if—
(a)the company carrying on the trade (“the trader”), or a predecessor, has incurred site preparation expenditure in relation to the site in the course of carrying on the trade, and
(b)at the time the trader first deposits waste materials on the site, the trader holds a waste disposal licence which is then in force.
(2)A deduction is allowed for the amount of the site preparation expenditure allocated to the period of account under section 143.
(3)For the purposes of this section “predecessor”, in relation to the trader, means a person who—
(a)has ceased to carry on the trade carried on by the trader or ceased to carry on a trade so far as relating to the site, and
(b)has transferred the whole of the site to the trader,
and it does not matter for this purpose whether or not the estate or interest in the site transferred to the trader is the same as that held by that person.
(4)For the purposes of this section and section 143, if site preparation expenditure has been incurred by a predecessor—
(a)the trade carried on by the trader is treated as the same as the trade carried on by the predecessor, and
(b)deductions are to be allowed to the trader (and not to the predecessor) as if everything done to or by the predecessor were done to or by the trader.
[F1(5)Two companies that are in the same group may make a joint election the effect of which is that—
(a)in respect of any research and development contracted out by one of those companies to the other, the company contracting it out is to be treated for the purposes of this Part as an ineligible company, and
(b)in determining whether activity is research and development for the purposes of this Part, anything done by one of those companies further to a contract with the other is to be treated as if done by the other company, in any case where that results in activity that would not otherwise be research and development being regarded as such.
(6)Such an election—
(a)must be made by notice in writing to an officer of Revenue and Customs, and
(b)has effect until—
(i)it is revoked by either company by further such notice, or
(ii)the companies are no longer in the same group.]
(5)For—
(a)the meaning of “site preparation expenditure”, “waste disposal licence” and “waste disposal site”, and
(b)a rule about pre-trading expenditure,
see section 144.
Textual Amendments
F1S. 142(5)(6) inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(14)(c), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2