Corporation Tax Act 2009 section 1163

No relief if company responsible for contamination or dereliction or polluter has interest

Section 1163 denies contaminated land tax relief to life assurance companies where the company itself caused the contamination or dereliction, or where the polluter retains an interest in the land.

• A life assurance company cannot claim relief under sections 1161 or 1162 if the contamination or dereliction was caused wholly or partly by the company itself, or by a person with a relevant connection to the company.
• Relief is also denied where a third party caused the contamination or dereliction and that third party (or someone connected with them) holds a relevant interest in the land.
• A relevant interest includes holding any interest in, right over, or licence to occupy the land, as well as holding an option to acquire any such interest, right, or licence.
• A relevant interest also arises where the polluter has disposed of an estate or interest in the land for a price that reflects, to any extent, the expected increase in value from the remediation work being carried out.