|
| |
|
| |
(6) | The reference in subsection (2C) of section 393A of ICTA to so much of the |
| |
loss referred to in that subsection not falling within subsection (2B) of that |
| |
section as does not exceed the amount of the allowance mentioned in |
| |
subsection (2C)(b) (“the subsection (2C) loss”) has effect in relation to a |
| 5 |
relevant accounting period as a reference to so much of the subsection (2C) |
| |
loss as exceeds that which can be set off under section 393A of ICTA by |
| |
virtue of this paragraph. |
| |
| |
| |
Contaminated and derelict land |
| 10 |
| |
Amendments of Part 14 of CTA 2009 |
| |
1 | Part 14 of CTA 2009 (remediation of contaminated land) is amended as |
| |
| |
2 | In the heading of the Part, after “contaminated” insert “or derelict”. |
| 15 |
3 (1) | Section 1143 (overview of Part) is amended as follows. |
| |
(2) | In subsection (1), after “contamination” insert “or dereliction”. |
| |
(3) | In subsection (7), after “contaminated” insert “or derelict”. |
| |
4 (1) | Section 1144 (“qualifying land remediation expenditure”) is amended as |
| |
| 20 |
(2) | In subsection (1), for “E” substitute “F”. |
| |
(3) | In subsection (2), insert at the end “or a derelict state (see section 1145A)”. |
| |
(4) | In subsection (3), after “contaminated” insert “or derelict”. |
| |
(5) | For subsection (4) substitute— |
| |
“(4) | Condition C is that it is— |
| 25 |
(a) | in the case of land in a contaminated state, expenditure on |
| |
relevant contaminated land remediation undertaken by the |
| |
company (see section 1146), or |
| |
(b) | in the case of land in a derelict state, expenditure on relevant |
| |
derelict land remediation so undertaken (see section 1146A).” |
| 30 |
(6) | In subsection (5), for paragraph (c) (and the “or” before it) substitute— |
| |
“(c) | incurred in respect of relevant land remediation contracted |
| |
out by the company to another person with whom the |
| |
company is not connected, or |
| |
(d) | qualifying expenditure on connected sub-contracted land |
| 35 |
remediation (see section 1175).” |
| |
(7) | After subsection (6) insert— |
| |
“(6A) | Condition F is that the expenditure is not incurred on landfill tax.” |
| |
|
| |
|
| |
|
5 | For section 1145 substitute— |
| |
“1145 | Land “in a contaminated state” |
| |
(1) | For the purposes of this Part land is in a contaminated state if (and |
| |
only if), because of something in, on or under the land, the land is in |
| |
| 5 |
(a) | relevant harm is being caused, or |
| |
(b) | there is a serious possibility that relevant harm will be |
| |
| |
(2) | But land is not in a contaminated state by reason of the presence in, |
| |
| 10 |
(a) | living organisms or decaying matter deriving from living |
| |
organisms, air or water, or |
| |
(b) | anything present otherwise than as a result of industrial |
| |
| |
(3) | The Treasury may by order specify circumstances in which |
| 15 |
subsection (2) is not to apply to the extent specified in the order; and |
| |
an order under this subsection may contain incidental, |
| |
supplemental, consequential and transitional provision and savings. |
| |
(4) | In this section “relevant harm” means— |
| |
(a) | death of living organisms or significant injury or damage to |
| 20 |
| |
(b) | significant pollution of controlled waters, |
| |
(c) | a significant adverse impact on the ecosystem, or |
| |
(d) | structural or other significant damage to buildings or other |
| |
structures or interference with buildings or other structures |
| 25 |
that significantly compromises their use. |
| |
1145A | Land “in a derelict state” |
| |
For the purposes of this Part land is in a derelict state if (and only if) |
| |
| |
(a) | is not in productive use, and |
| 30 |
(b) | cannot be put into productive use without the removal of |
| |
buildings or other structures. |
| |
1145B | Exclusion of nuclear sites |
| |
(1) | A nuclear site is not land in a contaminated state or land in a derelict |
| |
state for the purposes of this Part. |
| 35 |
(2) | “Nuclear site” means— |
| |
(a) | any site in respect of which a nuclear site licence is for the |
| |
| |
(b) | any site in respect of which, after the revocation or surrender |
| |
of a nuclear site licence, the period of responsibility of the |
| 40 |
licensee has not yet come to an end. |
| |
(3) | In subsection (2) “nuclear site licence”, “licensee” and “period of |
| |
responsibility” have the same meaning as in the Nuclear Installations |
| |
| |
6 (1) | Section 1146 (“relevant land remediation”) is amended as follows. |
| 45 |
|
| |
|
| |
|
| |
(a) | for “land remediation”, in relation to land” substitute “contaminated |
| |
land remediation”, in relation to land which is in a contaminated |
| |
state and in which a major interest has been”, and |
| |
(b) | for “and B” substitute “to C”. |
| 5 |
| |
(a) | in paragraph (a), for “harm, or any pollution of controlled waters,” |
| |
substitute “relevant harm”, and |
| |
(b) | omit paragraph (b) (and the “or” before it). |
| |
(4) | After that subsection insert— |
| 10 |
“(3A) | Condition C is that the activities are not— |
| |
(a) | activities of a description specified by order made by the |
| |
| |
(b) | activities required by or by virtue of any enactment specified |
| |
| 15 |
(3B) | An order under subsection (3A) may contain incidental, |
| |
supplemental, consequential and transitional provision and |
| |
| |
(5) | In subsection (5), for the words after “(and only if)” substitute “because of |
| |
something in, on or under the land by virtue of which it is contaminated |
| 20 |
land, the land is in a condition such that— |
| |
(a) | significant pollution of those waters is being caused, or |
| |
(b) | there is a serious possibility that significant pollution of those |
| |
| |
(6) | In the heading, after “relevant” insert “contaminated”. |
| 25 |
7 | After that section insert— |
| |
“1146A | “Relevant derelict land remediation” |
| |
(1) | For the purposes of this Part “relevant derelict land remediation”, in |
| |
relation to land which is in a derelict state and in which a major |
| |
interest has been acquired by a company, means— |
| 30 |
(a) | activities in relation to which conditions A and B are met, and |
| |
(b) | if there are such activities, relevant preparatory activity. |
| |
(2) | Condition A is that the activities comprise the doing of any works, |
| |
the carrying out of any operations or the taking of any steps in |
| |
relation to the land in question. |
| 35 |
(3) | Condition B is that the purpose of the activities is a purpose specified |
| |
by order made by the Treasury. |
| |
(4) | An order under subsection (3) may contain incidental, supplemental, |
| |
consequential and transitional provision and savings. |
| |
(5) | For the purposes of subsection (1)(b) “relevant preparatory activity” |
| 40 |
has the same meaning as for the purposes of subsection (1)(b) of |
| |
section 1146 (see subsection (4) of that section, but reading the |
| |
reference to subsection (1)(a) of that section as a reference to |
| |
subsection (1)(a) of this section).” |
| |
|
| |
|
| |
|
8 | In the heading of Chapter 2, after “contaminated” insert “or derelict”. |
| |
9 (1) | Section 1147 (deduction for capital expenditure) is amended as follows. |
| |
(2) | In subsection (2), after “that” insert “a major interest in”. |
| |
(3) | For subsection (3) substitute— |
| |
“(3) | Condition B is that— |
| 5 |
(a) | in the case of land in a contaminated state, the land was in a |
| |
contaminated state at the time of the acquisition, and |
| |
(b) | in the case of land in a derelict state, the land was in a derelict |
| |
state throughout the period beginning with the earlier of— |
| |
| 10 |
(ii) | the date on which a major interest in the land was first |
| |
acquired by the company or a person who was |
| |
connected with the company. |
| |
(3A) | The Treasury may by order— |
| |
(a) | specify circumstances in which the condition in paragraph (a) |
| 15 |
of subsection (3) need not be met, or |
| |
(b) | replace the date for the time being specified in paragraph |
| |
(b)(i) of that subsection with a later date. |
| |
(3B) | An order under subsection (3A) may contain incidental, |
| |
supplemental, consequential and transitional provision and |
| 20 |
| |
10 (1) | Section 1149 (additional deduction for qualifying land remediation |
| |
expenditure) is amended as follows. |
| |
(2) | In subsection (2), after “that” insert “a major interest in”. |
| |
(3) | For subsection (3) substitute— |
| 25 |
“(3) | Condition B is that— |
| |
(a) | in the case of land in a contaminated state, the land was in a |
| |
contaminated state at the time of the acquisition, and |
| |
(b) | in the case of land in a derelict state, the land was in a derelict |
| |
state throughout the period beginning with the earlier of— |
| 30 |
| |
(ii) | the date on which a major interest in the land was first |
| |
acquired by the company or a person who was |
| |
connected with the company. |
| |
(3A) | The Treasury may by order— |
| 35 |
(a) | specify circumstances in which the condition in paragraph (a) |
| |
of subsection (3) need not be met, or |
| |
(b) | replace the date for the time being specified in paragraph |
| |
(b)(i) of that subsection with a later date. |
| |
(3B) | An order under subsection (3A) may contain incidental, |
| 40 |
supplemental, consequential and transitional provision and |
| |
| |
11 (1) | Section 1150 (no relief if company responsible for contamination) is |
| |
| |
|
| |
|
| |
|
(2) | The existing provision becomes subsection (1) of that section. |
| |
(3) | In that subsection, for “state if the land is in that” substitute “or derelict state |
| |
if the land is in a contaminated or derelict”. |
| |
(4) | After that subsection insert— |
| |
“(2) | A company is not entitled to relief under this Chapter in respect of |
| 5 |
expenditure on land all or part of which is in a contaminated or |
| |
| |
(a) | the land is in that state wholly or partly as a result of any |
| |
thing done, or omitted to be done, by a person not within |
| |
| 10 |
(b) | that person, or a person connected with that person, has a |
| |
relevant interest in the land. |
| |
(3) | For the purposes of subsection (2) a person has a relevant interest in |
| |
| |
(a) | holds any interest in, right over or licence to occupy the land |
| 15 |
(including an option to acquire any such interest, right or |
| |
licence in any circumstances), or |
| |
(b) | has disposed of any estate or interest in the land for a |
| |
consideration that to any extent reflects the impact, or likely |
| |
impact, on the value of the land of the remediation of its |
| 20 |
contamination or dereliction.” |
| |
(5) | In the heading, insert at the end “or dereliction or polluter has interest”. |
| |
12 (1) | Section 1161 (relief in respect of I minus E basis: enhanced expenses payable) |
| |
| |
(2) | In subsection (2), after “that” insert “a major interest in”. |
| 25 |
(3) | For subsection (3) substitute— |
| |
“(3) | Condition B is that— |
| |
(a) | in the case of land in a contaminated state, the land was in a |
| |
contaminated state at the time of the acquisition by the |
| |
company of a major interest in the land, and |
| 30 |
(b) | in the case of land in a derelict state, the land was in a derelict |
| |
state throughout the period beginning with the earlier of— |
| |
| |
(ii) | the date on which a major interest in the land was first |
| |
acquired by the company or a person who was |
| 35 |
connected with the company. |
| |
(3A) | The Treasury may by order— |
| |
(a) | specify circumstances in which the condition in paragraph (a) |
| |
of subsection (3) need not be met, or |
| |
(b) | replace the date for the time being specified in paragraph |
| 40 |
(b)(i) of that subsection with a later date. |
| |
(3B) | An order under subsection (3A) may contain incidental, |
| |
supplemental, consequential and transitional provision and |
| |
| |
| 45 |
|
| |
|
| |
|
(a) | for “Chapter 4” substitute “land remediation”, and |
| |
(b) | omit “(see section 1162)”. |
| |
| |
(6) | In subsection (6), omit “150% of”. |
| |
(7) | In the heading, omit “enhanced”. |
| 5 |
(8) | In the heading before the section omit “for qualifying Chapter 4 expenditure”. |
| |
13 | For section 1162 substitute— |
| |
| |
(1) | If a company is entitled to relief under section 1161 for an accounting |
| |
period it is also entitled to relief under this section for the period. |
| 10 |
(2) | For the company to obtain the relief it must make a claim. |
| |
(3) | The relief is that the company may treat 50% of the qualifying |
| |
Chapter 4 expenditure as expenses payable which fall to be brought |
| |
into account at Step 3 in section 76(7) of ICTA (deduction for |
| |
| 15 |
(4) | For the purposes of this Chapter “the qualifying Chapter 4 |
| |
| |
(a) | the company’s qualifying land remediation expenditure for |
| |
the accounting period, less |
| |
(b) | the amount (if any) which as a result of paragraph (a) of Step |
| 20 |
1 in section 76(7) of ICTA is not to be brought into account at |
| |
that step as expenses payable for the period.” |
| |
14 (1) | Section 1163 (no relief if company responsible for contamination) is |
| |
| |
(2) | The existing provision becomes subsection (1) of that section. |
| 25 |
| |
(a) | after “1161” insert “or 1162”, and |
| |
(b) | for “state if the land is in that” substitute “or derelict state if the land |
| |
is in a contaminated or derelict”. |
| |
(4) | After that subsection insert— |
| 30 |
“(2) | A company is not entitled to relief under this Chapter in respect of |
| |
expenditure on land all or part of which is in a contaminated or |
| |
| |
(a) | the land is in that state wholly or partly as a result of any |
| |
thing done, or omitted to be done, by a person not within |
| 35 |
| |
(b) | that person, or a person connected with that person, has a |
| |
relevant interest in the land. |
| |
(3) | For the purposes of subsection (2) a person has a relevant interest in |
| |
| 40 |
(a) | the person holds any interest in, right over or licence to |
| |
occupy the land (including an option to acquire any such |
| |
interest, right or licence in any circumstances), or |
| |
|
| |
|
| |
|
(b) | has disposed of any estate or interest in the land for a |
| |
consideration that to any extent reflects the impact, or likely |
| |
impact, on the value of the land of the remediation of its |
| |
contamination or dereliction.” |
| |
(5) | In the heading, insert at the end “or dereliction or polluter has interest”. |
| 5 |
15 | In section 1165(1)(a) (meaning of “qualifying life assurance business loss”), |
| |
after “1161” insert “or 1162”. |
| |
16 | In section 1169(2)(c) and (3)(c) (artificially inflated claims for relief), after |
| |
| |
17 (1) | Section 1173 (expenditure incurred because of contamination) is amended as |
| 10 |
| |
(2) | In subsections (1) and (2), after “contaminated” insert “or derelict”. |
| |
(3) | For subsection (3) substitute— |
| |
“(3) | Subsection (4) applies— |
| |
(a) | in the case of land in a contaminated state, if the main |
| 15 |
purpose of any activities is any of those specified in section |
| |
| |
(b) | in the case of land in a derelict state, if the main purpose of |
| |
any activities is any of those specified in section 1146A(3).” |
| |
(4) | In the heading, insert at the end “or dereliction”. |
| 20 |
18 | Omit section 1174 (sub-contractor payments: introductory). |
| |
19 (1) | Section 1175 (“qualifying expenditure on sub-contracted land remediation”: |
| |
connected persons) is amended as follows. |
| |
(2) | After subsection (1) insert— |
| |
“(1A) | In this section, a “sub-contractor payment” means a payment made |
| 25 |
by the company to the sub-contractor in respect of relevant land |
| |
remediation contracted out by the company to the sub-contractor.” |
| |
(3) | In subsection (2), for “sub-contracted land remediation” substitute |
| |
“connected sub-contracted land remediation” for the purposes of section |
| |
| 30 |
| |
(a) | in paragraph (a), after “carrying on” insert “or arranging for carrying |
| |
| |
(b) | in paragraph (c) for “incurred on” substitute “in respect of”. |
| |
(5) | For the heading substitute “Connected sub-contractors”. |
| 35 |
20 | Omit section 1176 (“qualifying expenditure on sub-contracted land |
| |
remediation”: other cases). |
| |
21 | In section 1178 (persons having a “relevant connection” to a company)— |
| |
(a) | after “contaminated” insert “or derelict”, and |
| |
(b) | in paragraph (b), after “when” insert “a major interest in”. |
| 40 |
|
| |
|