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.

(3)Condition B is that—

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

(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—

(i)1 April 1998, and

(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.

(3A)The Treasury may by order—

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

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

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

(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.