Corporation Tax Act 2009 section 145

Site restoration payments

Section 145 deals with tax deductions available for payments made to restore sites used for waste disposal activities, including the timing of the deduction, how the deductible amount is calculated, and an anti-avoidance rule.

• A company carrying on a trade may claim a deduction for site restoration payments made to comply with waste disposal licence conditions, planning permission conditions, or relevant planning obligations
• Where the payment is made to a connected person, the deduction is only available in the period when the relevant restoration work is completed; otherwise, it is available in the period the payment is made
• The deductible amount is the payment less any amounts already covered by capital allowances or deducted in an earlier period
• No deduction is allowed if the payment arises from arrangements to which the company is a party and a main purpose of those arrangements is to obtain the deduction