Corporation Tax Act 2010 section 920

Capital allowances deductions: waste disposal and cemeteries

Section 920 deals with the tax treatment of capital expenditure deductions previously allowed in connection with leased assets used for waste disposal sites or cemeteries, where a major lump sum payment arises.

• Applies where the current lessor ("L") has received deductions for capital expenditure on a leased asset relating to waste disposal site preparation or restoration, or cemetery and memorial garden expenditure
• When a relevant occasion arises (such as a major lump sum payment in connection with the lease), L is treated as having received trading receipts from the trade in question
• The amount treated as a trading receipt is the lower of the major lump sum received and the total deductions previously allowed
• This effectively claws back earlier tax relief where the lessor receives a significant payment in connection with the leased asset