Corporation Tax Act 2009 section 142

Deduction for site preparation expenditure

Section 142 allows companies carrying on a waste disposal trade to claim a tax deduction for capital expenditure incurred in preparing a site for waste disposal, spread over the periods in which waste is actually deposited on the site.

• Companies can deduct site preparation expenditure that would otherwise be unrelieved because it is capital in nature and not eligible for capital allowances
• The deduction is available in each period of account in which waste materials are deposited on the site, provided a waste disposal licence was in force when waste was first deposited
• Where a site has been transferred from a predecessor who ceased the trade, the current trader inherits the right to claim deductions for the predecessor's site preparation expenditure
• There is no requirement to make a formal claim to HMRC — the deduction is calculated and allocated automatically under the rules in section 143