Section 1149 | Additional deduction for qualifying land remediation expenditure

(1)A company is entitled to corporation tax relief for an accounting period if each of conditions A to D is met.

(2)Condition A is that a major interest in land in the United Kingdom is, or has been, acquired by the company for the purposes of a UK property business or a trade carried on by it.^F1

(3)Condition B is that—^F2

(a)in the case of land in a contaminated state, the land was in a contaminated state at the time of the acquisition, and^F2

(b)in the case of land in a derelict state, the land was in a derelict state throughout the period beginning with the earlier of—^F2

(i)1 April 1998, and^F2

(ii)the date on which a major interest in the land was first acquired by the company or a person who was connected with the company.^F2

(3A)The Treasury may by order—^F2

(a)specify circumstances in which the condition in paragraph (a) of subsection (3) need not be met, or^F2

(b)replace the date for the time being specified in paragraph (b)(i) of that subsection with a later date.^F2

(3B)An order under subsection (3A) may contain incidental, supplemental, consequential and transitional provision and savings.^F2

(4)Condition C is that the company carries on a UK property business or a trade in the accounting period.

(5)Condition D is that the company incurs qualifying land remediation expenditure in respect of the land which is allowable as a deduction in calculating for corporation tax purposes the profits of the business or the trade for the period.

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

(7)The relief is an additional deduction in calculating the profits of the business or the trade for the period.

(8)The amount of the additional deduction is 50% of the qualifying land remediation expenditure.