CIRD60105 | Land Remediation Relief: Exclusions: Arrangements put in place which either create or enhance a claim

FA01/SCH22/PARA29

CTA09/S1169

There is anti-avoidance legislation to prevent:

• manufactured claims, or

• claims being inflated.

Where a company enters into arrangements wholly or mainly to create or enhance a claim then the amount of relief is restricted to the amount that would have been available had they not entered into those arrangements.

This applies where a company enters into an arrangement wholly or mainly to obtain:

• Land Remediation Relief to which it would not otherwise be entitled, or of a greater amount than that to which it would otherwise be entitled;

• a deduction for capital expenditure which would not otherwise be allowed, or of a greater amount than would otherwise be allowed, or

• a Land Remediation Tax Credit to which it would not otherwise be entitled, or of a greater amount than that to which it would otherwise be entitled.

Arrangement

The term arrangement is given a broad definition and includes any scheme, agreement or understanding, whether or not legally enforceable.

This is an anti-avoidance provision. Before entering into argument, Officers of HMRC should make a report of the facts to BAI Business Profits.