Corporation Tax Act 2009 section 1176

"Qualifying expenditure on sub-contracted land remediation": other cases

Section 1176 identifies the amount of qualifying expenditure on sub-contracted land remediation where the company and the sub-contractor are not connected parties.

• This section applies when land remediation work is sub-contracted and the company and sub-contractor are not connected with each other.
• Where the parties are unconnected, the qualifying expenditure is the amount actually paid by the company to the sub-contractor for the land remediation work.
• This contrasts with the rules for connected parties, where the qualifying expenditure may be restricted to the sub-contractor's own costs rather than the amount paid.
• The purpose is to ensure that arm's length payments between independent parties are fully recognised as qualifying expenditure for land remediation relief.