Corporation Tax Act 2009 section 1144

Qualifying land remediation expenditure

Section 1144 defines the six conditions (A to F) that must all be met for a company's expenditure on land remediation to qualify for tax relief.

• The expenditure must relate to land that is contaminated or derelict, and would not have been incurred but for that contamination or dereliction (Conditions A and B)
• The expenditure must be on relevant remediation work actually undertaken by the company, and must fall into one of four permitted cost categories: staffing costs, materials, work contracted out to an unconnected party, or qualifying expenditure on work sub-contracted to a connected party (Conditions C and D)
• The expenditure must not be subsidised — for example, by grants or other financial assistance (Condition E)
• The expenditure must not be on landfill tax (Condition F)