Corporation Tax Act 2009 section 251

Deduction for expenditure on energy-saving items

Section 251 provides a special deduction for companies with property businesses that spend money on acquiring and installing energy-saving items in dwelling-houses, where the expenditure would normally be disallowed as capital expenditure.

• Companies carrying on a property business involving dwelling-houses could deduct the cost of acquiring and installing qualifying energy-saving items, even though such expenditure would normally be disallowed as capital
• The expenditure must have been incurred before 1 April 2015, must have been wholly and exclusively for the property business, and no capital allowances claim must be available in respect of it
• Energy-saving items are those specified in Treasury regulations, which may impose conditions on qualifying items including conditions based on information or documents issued by external bodies
• Where only part of the expenditure qualifies for relief, a deduction is allowed for that part based on a just and reasonable apportionment