Corporation Tax Act 2009 section 252

Restrictions on relief

Section 252 sets out the circumstances in which a company cannot claim a deduction for expenditure on energy-saving items that would otherwise be available under section 251.

• No deduction is allowed if the dwelling-house is still being built or the company does not yet hold an interest in the land when the energy-saving item is installed.
• No deduction is allowed for pre-trading expenditure treated as incurred on the date the property business starts, unless the expenditure was actually incurred no more than 6 months before that start date.
• No deduction is allowed to the extent that the cost of acquiring and installing the energy-saving item in a building containing the dwelling-house does not benefit that dwelling-house.
• These restrictions ensure the relief is only available where the company has an established interest in a completed property and the expenditure directly benefits the relevant dwelling-house.