Corporation Tax Act 2009 section 1172

Expenditure on materials

Section 1172 defines when expenditure on materials qualifies as attributable to relevant land remediation for the purposes of the land remediation tax relief regime.

• Materials expenditure can qualify for land remediation relief only if the materials are used directly in the remediation work
• The test is one of direct employment — materials must be applied to the land being remediated, not used indirectly or peripherally
• This provision forms part of the broader rules in Part 14 of the Corporation Tax Act 2009 governing land remediation relief
• Indirect or ancillary materials that are not directly employed in the remediation process will not qualify