Corporation Tax Act 2009 section 1149

Additional deduction for qualifying land remediation expenditure

Section 1149 provides an additional corporation tax deduction of 50% for companies that incur qualifying expenditure on remediating contaminated or derelict land used in their trade or UK property business.

• Companies can claim an additional deduction equal to 50% of qualifying land remediation expenditure on top of the normal revenue deduction already allowed against profits
• Four conditions must all be met: the company must hold a major interest in UK land acquired for a trade or UK property business, the land must have been contaminated at acquisition or derelict since at least 1 April 1998, the company must be carrying on that trade or property business in the period, and the remediation expenditure must already be allowable as a deduction in calculating taxable profits
• The relief must be actively claimed by the company using the ordinary claims procedure under the corporation tax self-assessment rules — there is no special claims process
• The Treasury has power to amend the conditions by order, including specifying circumstances where the contamination timing requirement need not be met and replacing the 1 April 1998 date for derelict land with a later date