Corporation Tax Act 2009 section 1173

Expenditure incurred because of contamination or dereliction

Section 1173 identifies the specific circumstances in which expenditure on land is treated as having been incurred because that land is in a contaminated or derelict state, for the purposes of qualifying for land remediation relief.

• Where the sole reason expenditure on land is higher than it would otherwise be is because the land is contaminated or derelict, the additional cost qualifies as land remediation expenditure.
• Where the main purpose of activities carried out on contaminated land is relevant contaminated land remediation (such as removing pollutants or restoring the land), the expenditure on those activities qualifies.
• Where the main purpose of activities carried out on derelict land is relevant derelict land remediation, the expenditure on those activities likewise qualifies.
• These two specific routes to qualification do not limit the broader scope of the general rule — expenditure may still qualify under the general condition even if it does not fall within either of these two categories.