What is relevant derelict land remediation under Corporation Tax Act 2009 section 1146A?

Relevant derelict land remediation applies where a company acquires a major interest in derelict land and carries out qualifying activities on it. The activities must involve works, operations, or steps on the land whose purpose is specified by Treasury order. Relevant preparatory activities, such as site surveys, also qualify provided they support actual qualifying remediation work.

What conditions must be met for derelict land remediation activities to qualify for tax relief?

Two conditions must be satisfied. First, the activities must comprise actual works, operations, or steps carried out in relation to the derelict land. Second, the purpose of those activities must be one that the Treasury has specified by statutory order as a qualifying purpose. Both conditions must be met for the relief to apply.

Do preparatory activities qualify under section 1146A derelict land remediation relief?

Yes, relevant preparatory activities qualify for the relief. These include steps such as assessments or site surveys carried out in preparation for qualifying remediation work. However, they only qualify if there are actual qualifying remediation activities to which the preparatory work relates, following the same meaning as in section 1146.

What powers does the Treasury have under section 1146A regarding derelict land remediation?

The Treasury has the power to specify qualifying purposes for derelict land remediation by statutory order. This order-making power includes the ability to make incidental, supplemental, consequential, and transitional provisions, giving the Treasury flexibility to define and update which types of remediation work qualify without requiring primary legislation.

Corporation Tax Act 2009 section 1146A

Relevant derelict land remediation

Section 1146A defines what counts as "relevant derelict land remediation" for the purposes of the contaminated land tax relief regime, extending the relief to cover derelict land acquired by a company.

Relevant derelict land remediation applies where a company has acquired a major interest in land that is in a derelict state and carries out qualifying activities on that land.
The qualifying activities must involve doing works, carrying out operations, or taking steps in relation to the land, and the purpose of those activities must be one specified by Treasury order.
Relevant preparatory activities also qualify, provided there are qualifying remediation activities to which they relate.
The Treasury has the power to specify the qualifying purposes by order, and such orders may include incidental, supplemental, consequential, and transitional provisions.

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