(1) If—
(a) a company makes a staff provision payment, and
(b) the company, the staff provider and (if different) the staff controller (or staff controllers) are not all connected,
they may jointly elect that section 1129 is to apply to them as if they were all connected.
(2) Any such election has effect in relation to all staff provision payments paid under the same contract or other arrangement.
(3) The election must be made by notice in writing to an officer of Revenue and Customs.
(4) The notice must be given before the end of the period of two years beginning immediately after the end of the company's accounting period in which the contract or other arrangement is entered into.
(5) An election under this section is irrevocable.
1131 Qualifying expenditure on externally provided workers: other cases
(1) This section applies if—
(a) a company makes a staff provision payment,
(b) the company, the staff provider and (if different) the staff controller (or staff controllers) are not all connected, and
(c) no election is made under section 1130.
(2) The company's qualifying expenditure on externally provided workers is 65% of so much of the staff provision payment as is attributable to qualifying earnings of externally provided workers.
(3) In subsection (2) the reference to the staff provision payment is to that payment before any deduction is made from the payment under—
(a) section 61S of ITEPA 2003,
(b) regulation 19 of the Social Security Contributions (Intermediaries) Regulations 2000, or
(c) regulation 19 of the Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000.
(4) Any apportionment of expenditure of the company necessary for the purposes of this section is to be made on a just and reasonable basis.
1131A Sections 1129 and 1131: secondary Class 1 NICS paid by company
(1) This section applies if—
(a) a company makes a staff provision payment,
(b) the company is treated as making a payment of deemed direct earnings the amount of which is calculated by reference to the amount of the staff provision payment, and
(c) the company pays a secondary Class 1 national insurance contribution in respect of the payment of deemed direct earnings.
(2) In determining the company's qualifying expenditure on externally provided workers in accordance with section 1129(2) or section 1131(2) the amount of the staff payment provision is to be treated as increased by the amount of the contribution.
(3) In determining the company's qualifying expenditure on externally provided workers in accordance with section 1129(2) the aggregate of the relevant expenditure of each staff controller is to be treated as increased by the amount of the contribution.
(4) But subsection (2) does not apply to the extent that the expenditure incurred by the company in paying the contribution is met directly or indirectly by a staff controller.
(5) “A payment of deemed direct earning” means a payment the company is treated as making by reason of regulation 14 of the Social Security Contributions (Intermediaries) Regulations 2000 or regulation 14 of the Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000.
(1) This section applies for the purposes of this Part to identify when qualifying expenditure on externally provided workers is attributable to relevant research and development.
(2) Qualifying expenditure on externally provided workers is so attributable if the workers are directly and actively engaged in relevant research and development.
(3) Subsection (4) applies if an externally provided worker is partly engaged directly and actively in relevant research and development.
(4) The appropriate proportion of the qualifying expenditure relating to the worker is treated as attributable to relevant research and development.
(5) Subsection (6) applies if persons provide services (such as secretarial or administrative services) in support of activities carried on by others.
(6) Those persons are not, as a result of providing those services, to be treated as themselves directly and actively engaged in those activities.
(1) This section determines what are “qualifying earnings” in relation to an externally provided worker for the purposes of this Part.
(2) The worker’s earnings are qualifying earnings if either—
(a) the staff controller, or
(b) the company in relation to which the worker is an externally provided worker,
is, in respect of any part of those earnings, required to account to an officer of Revenue and Customs both for income tax under PAYE regulations and for Class 1 national insurance contributions.
(3) If subsection (2) does not apply, the worker’s earnings are qualifying earnings if and to the extent that they are attributable to relevant research and development that is undertaken outside the United Kingdom and to which section 1138A applies.
(4) In this section, “the worker’s earnings” means the worker’s earnings under the contract mentioned in section 1128(7).
(1) This section applies for the purposes of this Part.
(2) A person “contracts out” research and development if—
(a) the person enters into a contract under which activities are to be undertaken for it (whether by another party to the contract or by a sub-contractor),
(b) the activities undertaken in order to meet the obligations owed to the person under the contract include research and development, and
(c) it is reasonable to assume, having regard to the terms of the contract and any surrounding circumstances, that the person intended or contemplated when entering into the contract that research and development of that sort would be undertaken in order to meet those obligations.
(3) The research and development that is “contracted out” is the research and development referred to in subsection (2)(b), to the extent that subsection (2)(c) is satisfied in relation to it.
(4) Research and development contracted out by a person is contracted out “to”—
(a) the party to the contract who undertakes the obligations referred to in subsection (2)(b), and
(b) any sub-contractor who undertakes contractual responsibility for the activities needed to meet those obligations.
(5) References to a sub-contractor include any sub-contractor at one or more removes from the contract referred to in subsection (2).
(6) A “contractor payment” is a payment made in respect of contracted out research and development to a person to whom it is contracted out.
(7) A payment that relates only partly to contracted out research and development is to be apportioned on a just and reasonable basis for the purposes of subsection (6).
(8) Sections 1134 to 1136 determine the “qualifying element” of a contractor payment.
1134 Qualifying element of contractor payment: connected persons
(1) This section applies if—
(a) a company (“A”) makes a contractor payment to another person (“B”),
(b) A and B are connected, and
(c) in accordance with generally accepted accounting practice, the whole of the ... payment and all of B’s relevant expenditure have been brought into account in determining B’s profit or loss for a relevant period.
(2) The qualifying element of the ... payment is—
(a) the entire payment, or
(b) if less, an amount equal to B’s relevant expenditure.
(3) “Relevant expenditure” of B means expenditure that—
(a) is incurred by B in carrying on, on behalf of the company, the activities to which the ... payment relates,
(b) is not of a capital nature,
(c) is incurred on staffing costs, software , data licences, cloud computing services or consumable items or relevant payments to the subjects of a clinical trial or is qualifying expenditure on externally provided workers, and
(e) is incurred in respect of—
(i) research and development that is undertaken in the United Kingdom, or
(ii) research and development that is undertaken outside the United Kingdom and to which section 1138A applies.
(4) “Relevant period” means a period—
(a) for which accounts are drawn up for B, and
(b) that ends not more than 12 months after the end of A’s period of account in which the contractor payment is, in accordance with generally accepted accounting practice, brought into account in determining A’s profit or loss.
(5) In section 1123 (staffing costs) and sections 1127 to 1131 (qualifying expenditure on externally provided workers) as they apply for the purposes of subsection (3)(c), references to a company are to be read as references to B.
(6) Any apportionment of expenditure of A or B necessary for the purposes of this section is to be made on a just and reasonable basis.
(1) Where a company makes a contractor payment to a person with whom it is not connected, the company and that person may jointly elect that section 1134 is to apply to them as if they were connected.
(2) Any such election must be made in relation to all contractor payments paid under the same contract or ....
(3) The election must be made by notice in writing to an officer of Revenue and Customs.
(4) The notice must be given before the end of the period of two years beginning immediately after the end of the company's accounting period in which the contract ... is entered into.
(5) An election under this section is irrevocable.
1136 Qualifying element of contractor payment: other cases
(1) This section applies to a contractor payment to which section 1134 does not apply.
(2) The qualifying element of the payment is 65% of the relevant portion of the payment.
(3) The relevant portion is the portion that is incurred in respect of—
(a) research and development that is undertaken in the United Kingdom, or
(b) research and development that is undertaken outside the United Kingdom and to which section 1138A applies.
(4) An apportionment of expenditure necessary for the purposes of this section is to be made on a just and reasonable basis.
1137 Accounting periods: company not within charge to corporation tax
(1) This section applies to a company if—
(a) it is not within the charge to corporation tax, and
(b) it incurs qualifying Chapter 2 expenditure ... .
(2) For the purposes of this Part the company is treated as having the accounting periods it would have if—
(a) it carried on a trade consisting of the activities in respect of which the expenditure is incurred, and
(b) it had started to carry on that trade when it started to carry on relevant research and development.
1138A Externally provided workers and contractors: R&D undertaken abroad
(1) This section applies to research and development undertaken outside the United Kingdom if—
(a) the research and development is undertaken in the circumstances described in subsection (2), or
(b) for the purposes of relief under Chapter 2 the research and development is undertaken, or contracted out, by a company whose registered office is in Northern Ireland.
(2) The circumstances are that there are conditions necessary for the purposes of the research and development—
(a) that are not present in the United Kingdom,
(b) that are present in the location in which the research and development is undertaken, and
(c) that it would be wholly unreasonable for the company to replicate in the United Kingdom.
(3) In subsection (2) “conditions”—
(a) includes—
(i) geographical, environmental or social conditions;
(ii) legal or regulatory requirements as a result of which the research and development may not be undertaken in the United Kingdom, but
(b) does not include conditions so far as relating to—
(i) the cost of the research and development;
(ii) the availability of workers to carry out the research and development.
(4) The Treasury may by regulations make provision specifying things that are not conditions for the purposes of subsection (2).
(5) Subsection (1)(b) does not apply in relation to a company in respect of an accounting period if the company—
(a) has not, at any time during the accounting period, carried on a trade involving—
(i) trade in goods, or
(ii) the generation, transmission, distribution, supply, wholesale trade or cross-border exchange of electricity, and
(b) has notified an officer of Revenue and Customs in writing that it wishes to rely on the exception in section 1112J(4) (restriction of Chapter 2 relief for Northern Ireland companies).
For the purposes of this Part in its application to an accounting period, a company’s expenditure is “attributable to an exempt foreign permanent establishment” if—
(a) an election by the company under section 18A applies to the period, and
(b) the expenditure is brought into account in calculating a relevant profits amount or a relevant losses amount for the purposes of that section as it applies in relation to the period.
(1) References in this Part to expenditure incurred on payments (however expressed) are references to expenditure incurred on payments made before the making of a claim under this Part in relation to that expenditure.
1140 “Relevant payments to the subjects of a clinical trial”
(1) For the purposes of this Part “relevant payment”, in relation to a subject of a clinical trial, means a payment made to the subject for participating in the trial.
(2) For the purposes of this Part “clinical trial” means an investigation in human subjects undertaken in connection with the development of a health care treatment or procedure.
For the purposes of this Part, a company is in the same group as another company if those companies are in the same group for the purposes of Part 5 of CTA 2010.
In this Part a “payment period” means a period—
(a) which ends on the fifth day of a month, and
(b) for which the company is liable to account for income tax and national insurance contributions to an officer of Revenue and Customs.
(1) For the purposes of this Part a company is an “ineligible company” if it is—
(a) a charity,
(b) an institution of higher education,
(c) an association (in the sense that word has in section 469(1)(a) of CTA 2010) which meets conditions A and B in that section (conditions for qualifying as a scientific research association),
(d) a health service body within the meaning of section 986 of that Act, or
(e) any other body prescribed, or of a description prescribed, by the Treasury, by order, for the purposes of this Part.
(2) In subsection (1)(b) “institution of higher education” means—
(a) an institution within the higher education sector within the meaning of the Further and Higher Education Act 1992 (c. 13),
(b) an institution within the higher education sector within the meaning of Part 2 of the Further and Higher Education (Scotland) Act 1992 (c. 37) or a central institution within the meaning of the Education (Scotland) Act 1980 (c. 44), or
(c) a higher education institution within the meaning of Article 30(3) of the Education and Libraries (Northern Ireland) Order 1993 (S.I. 1993/2810 (N.I. 12)).
(3) An order under this section is to have effect in relation to the accounting periods or expenditure specified in the order.
(4) The order may specify accounting periods beginning, or expenditure incurred, before the time the order is made.
(5) Two companies that are in the same group may make a joint election the effect of which is that—
(a) in respect of any research and development contracted out by one of those companies to the other, the company contracting it out is to be treated for the purposes of this Part as an ineligible company, and
(b) in determining whether activity is research and development for the purposes of this Part, anything done by one of those companies further to a contract with the other is to be treated as if done by the other company, in any case where that results in activity that would not otherwise be research and development being regarded as such.
(6) Such an election—
(a) must be made by notice in writing to an officer of Revenue and Customs, and
(b) has effect until—
(i) it is revoked by either company by further such notice, or
(ii) the companies are no longer in the same group.
1142A “Claim notification” and “claim notification period”
(1) For the purposes of this Part—
“claim notification” means, in relation to an R&D claim, a notification made by the company to an officer of His Majesty’s Revenue and Customs in accordance with regulations under subsection (2);
“claim notification period” means, in relation to an R&D claim, the period—
beginning with the first day of the period of account which is the same as the accounting period in respect of which the claim is made, or within which that accounting period falls, and
ending with the last day of the period of six months beginning with the first day after that period of account.
(2) The Commissioners for His Majesty’s Revenue and Customs may by regulations specify, in relation to a claim notification—
(a) information to be provided with the notification;
(b) the form and manner in which the notification is to be made.
For the purposes of this Part an “R&D claim” means a claim under—
(a) section 1042C (R&D expenditure credits),
(b) section 1044 (relief for SMEs: additional deduction), or
(c) section 1054 (entitlement to R&D tax credit).
(1) The right of a company to be paid an amount of R&D expenditure credit or R&D tax credit may not be assigned.
(2) Accordingly, a purported assignment of such a right, or an agreement to assign such a right, is void.
(3) References to assignment in this section are to be read in Scotland as references to assignation.
1142D General rule against payments of credit to nominees
(1) Where an amount of R&D expenditure credit or R&D tax credit is owed to a company, an officer of Revenue and Customs may not pay the amount to a person other than the company (even on the instruction or at the request of the company).
(2) Subsection (1) does not apply if—
(a) the company requests that payment be made to a person connected with the company, or
(b) the officer is satisfied that exceptional circumstances make payment to the company impracticable or inconvenient.
Any order or regulations under this Part may—
(a) contain incidental, supplemental, consequential and transitional provision and savings;
(b) make different provision for different purposes ....
(1) This Part provides for corporation tax relief for expenditure on land in the United Kingdom, where the expenditure is incurred for the purpose of remedying contamination or dereliction of the land.
(2) The reliefs available under Chapter 2 are—
(a) a deduction in calculating the profits of a UK property business or a trade carried on by a company for expenditure which is capital expenditure, and
(b) an additional deduction for expenditure which is allowed as a deduction in calculating the profits of such a business or trade.
(3) Chapter 3 provides for the payment of tax credits (“land remediation tax credits”) where a company—
(a) obtains relief under Chapter 2, and
(b) makes a loss in a UK property business or a trade.
(4) Chapter 4 contains provision about—
(a) the relief available to a company which carries on basic life assurance and general annuity business, and
(b) the payment of tax credits (“BLAGAB tax credits”) to such a company.
(5) Chapter 5 contains an anti-avoidance provision dealing with artificially inflated claims for relief under this Part or tax credits.
(6) Chapter 6 contains supplementary provision, including definitions.
(7) For information about the procedure for making claims under this Part see Schedule 18 to FA 1998, in particular Part 9B (claims relating to remediation of contaminated or derelict land) of that Schedule.
(1) For the purposes of this Part a company's “qualifying land remediation expenditure” means expenditure incurred by it in relation to which each of conditions A to F is met.
(2) Condition A is that it is expenditure on land all or part of which is in a contaminated state (see section 1145) or a derelict state (see section 1145A).
(3) Condition B is that the expenditure would not have been incurred if the land had not been in a contaminated or derelict state.
(4) Condition C is that it is—
(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).
(5) Condition D is that the expenditure is—
(a) incurred on staffing costs (see section 1170),
(b) incurred on materials (see section 1172),
(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 remediation (see section 1175).
(6) Condition E is that the expenditure is not subsidised (see section 1177).
(6A) Condition F is that the expenditure is not incurred on landfill tax.
(7) See also section 1173 for provision about some cases in which condition B is treated as met.
(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 a condition such that—
(a) relevant harm is being caused, or
(b) there is a serious possibility that relevant harm will be caused.
(2) But land is not in a contaminated state by reason of the presence in, on or under it of—
(a) living organisms or decaying matter deriving from living organisms, air or water, or
(b) anything present otherwise than as a result of industrial activity.
(3) The Treasury may by order specify circumstances in which 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 living organisms,
(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 that significantly compromises their use.
For the purposes of this Part land is in a derelict state if (and only if) the land—
(a) is not in productive use, and
(b) cannot be put into productive use without the removal of buildings or other structures.
(1) A nuclear site is not land in a contaminated state or land in a derelict state for the purposes of this Part.
(2) “Nuclear site” means—
(a) any site in respect of which a nuclear site licence is for the time being in force, or
(b) any site in respect of which, after the revocation or surrender of a nuclear site licence, the period of responsibility of the 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 Act 1965.
(1) For the purposes of this Part "relevant contaminated land remediation”, in relation to land which is in a contaminated state and in which a major interest has been acquired by a company, means—
(a) activities in relation to which conditions A to C 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—
(a) the land in question,
(b) any controlled waters affected by that land, or
(c) any land adjoining or adjacent to that land.
(3) Condition B is that the purpose of the activities is—
(a) to prevent or minimise, or remedy or mitigate the effects of, any relevant harm by virtue of which the land is in a contaminated state, . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3A) Condition C is that the activities are not—
(a) activities of a description specified by order made by the Treasury, or
(b) activities required by or by virtue of any enactment specified by such an order.
(3B) An order under subsection (3A) may contain incidental, supplemental, consequential and transitional provision and savings.
(4) For the purposes of subsection (1)(b) “relevant preparatory activity” means activity—
(a) which comprises the doing of anything for the purpose of assessing the condition of—
(i) the land in question,
(ii) any controlled waters affected by that land, or
(iii) any land adjoining or adjacent to that land, and
(b) which is connected to such activities within subsection (1)(a) as are undertaken by the company itself or on its behalf.
(5) For the purposes of this section controlled waters are “affected by” land in a contaminated state if (and only if) because of something in, on or under the land by virtue of which it is contaminated 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 waters will be caused.
(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—
(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.
(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” 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).
(1) A company is entitled to relief for an accounting period if conditions A, B and C are met.
(2) Condition A is that a major interest in land in the United Kingdom is, or has been, acquired by the company for the purposes of a UK property business or a trade carried on by it.
(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—
(i) 1 April 1998, and
(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) 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 savings.
(4) Condition C is that the company incurs capital expenditure which is qualifying land remediation expenditure in respect of the land.
(5) For the company to obtain the relief it must make an election.
(6) The relief is that for corporation tax purposes the capital expenditure is allowed as a deduction in calculating the profits of the UK property business or the trade for the period in which the expenditure is incurred.
(7) For the purposes of this section capital expenditure incurred for the purposes of a UK property business or a trade by a company about to carry on the business or trade is to be treated as incurred by the company—
(a) on the first day on which it does carry it on, and
(b) in the course of doing so.
(8) Relief is not available under this section in relation to so much of the qualifying land remediation expenditure as represents capital expenditure in respect of which an allowance, other than an allowance under Part 2A of CAA 2001 (structures and buildings allowances), has been, or may be, made under the enactments relating to capital allowances.
(1) An election under section 1147 must specify the accounting period in respect of which it is made.
(2) The election must be made by notice in writing to an officer of Revenue and Customs.
(3) The notice must be given before the end of the period of two years beginning immediately after the end of the accounting period to which the election relates.
1149 Additional deduction for qualifying land remediation expenditure
(1) A company is entitled to corporation tax relief for an accounting period if each of conditions A to D is met.
(2) Condition A is that a major interest in land in the United Kingdom is, or has been, acquired by the company for the purposes of a UK property business or a trade carried on by it.
(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—
(i) 1 April 1998, and
(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) 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 savings.
(4) Condition C is that the company carries on a UK property business or a trade in the accounting period.
(5) Condition D is that the company incurs qualifying land remediation expenditure in respect of the land which is allowable as a deduction in calculating for corporation tax purposes the profits of the business or the trade for the period.
(6) For the company to obtain the relief it must make a claim.
(7) The relief is an additional deduction in calculating the profits of the business or the trade for the period.
(8) The amount of the additional deduction is 50% of the qualifying land remediation expenditure.
1150 No relief if company responsible for contamination or dereliction or polluter has interest
(1) 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 derelict state if the land is in a contaminated or derelict state wholly or partly as a result of any thing done, or omitted to be done, at any time by—
(a) the company, or
(b) a person with a relevant connection to the company (see section 1178).
(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 derelict state if—
(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 subsection (1), and
(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 land if the person—
(a) 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.
(1) A company is entitled to a land remediation tax credit for an accounting period if it has a qualifying land remediation loss in the period (see section 1152).
(2) For the company to obtain a land remediation tax credit in respect of all or part of the qualifying land remediation loss it must make a claim.
(3) The amount of a land remediation tax credit to which the company is entitled is determined in accordance with section 1154.
(4) If a company claims a land remediation tax credit to which it is entitled for an accounting period, an officer of Revenue and Customs must pay to the company the amount of the credit.
This is subject to section 1155.
(5) See also section 1158, which restricts the carry forward of losses where a company claims a land remediation tax credit.
1152 Meaning of “qualifying land remediation loss”
(1) For the purposes of this Chapter a company has a “qualifying land remediation loss” in an accounting period if in the period—
(a) it obtains an additional deduction under section 1149 in calculating the profits of a UK property business or a trade, and
(b) it makes a UK property business loss in the business or a trading loss in the trade.
(2) The amount of the qualifying land remediation loss is—
(a) so much of the UK property business loss or trading loss as is unrelieved (see section 1153), or
(b) if less, 150% of the qualifying land remediation expenditure in respect of which the relief was obtained.
(1) The amount of a UK property business loss or trading loss that is “unrelieved” is the amount of the loss reduced by—
(a) any relief obtained by the company under section 62(1) to (3) of CTA 2010, or that was or could have been obtained by it making a claim under section 37(3)(a) of CTA 2010, to deduct the loss from total profits of the same accounting period,
(b) any other relief obtained by the company in respect of the loss, including relief under section 37(3)(b) of CTA 2010 (losses deducted from profits of an earlier accounting period), and
(c) any loss surrendered under Part 5 or Part 5A of CTA 2010 (surrender of relief to group or consortium members).
(2) No account is to be taken for this purpose of—
(a) any UK property business losses or trading losses brought forward from an earlier accounting period under section 45, 45A, 45B or 62(5) of CTA 2010, or
(b) any trading losses carried back from a later accounting period under section 37(3)(b) of CTA 2010 .
(3) Subsections (4) to (7) apply (instead of subsection (1)) to determine the amount of a UK property business loss that is “unrelieved” in an accounting period (“the relevant accounting period”) in a case where, as a result of section 87(3) of FA 2012, the loss is treated for the purposes of section 76 of that Act as a deemed BLAGAB management expense for the relevant accounting period.
(4) If in the relevant accounting period no amount falls to be carried forward to a subsequent accounting period under section 73 of FA 2012 (unrelieved expenses carried forward), no amount of the UK property business loss is unrelieved.
(5) If in the relevant accounting period there is an amount which falls to be carried forward to a subsequent accounting period under section 73 of FA 2012, the amount of the UK property business loss that is unrelieved is—
(a) the amount which so falls to be carried forward, or
(b) if less, the amount of the UK property business loss.
(6) In determining for the purposes of subsection (4) or (5) whether there is an amount which falls to be carried forward to a subsequent accounting period under section 73 of FA 2012, no account is to be taken of the amounts specified in subsection (7).
(7) Those amounts are amounts—
(a) brought forward from an earlier accounting period, and
(b) taken into account in calculating for the purposes of section 73 of FA 2012 the amount of adjusted BLAGAB management expenses of the company for the relevant accounting period as a result of—
(i) the previous application of section 73 or 93 of FA 2012, or
(ii) the carry forward to the relevant accounting period of an amount under section 391 of this Act (surplus deficit).
(8) If—
(a) the company is an insurance company, and
(b) it is treated under section 86 of FA 2012 as carrying on more than one UK property business,
references in this section to a UK property business loss are to be read in accordance with section 87(4) of FA 2012 (aggregation of losses).
(1) The amount of the land remediation tax credit to which a company is entitled for an accounting period is 16% of the amount of the qualifying land remediation loss for the period.
(2) The Treasury may by order replace the percentage for the time being specified in subsection (1) with a different percentage.
(3) An order under subsection (2) may contain incidental, supplemental, consequential and transitional provision and savings.
(1) This section applies if a land remediation tax credit for an accounting period is payable to a company.
(2) The amount payable in respect of—
(a) the land remediation tax credit, or
(b) interest on the credit payable under section 826 of ICTA,
may be applied in discharging any liability of the company to pay corporation tax.
(3) So far as the amount is so applied, the duty of the officer of Revenue and Customs to pay the credit under section 1151(4) is discharged.
(4) Subsection (5) applies if the company's tax return for the accounting period is enquired into by an officer of Revenue and Customs.
(5) In that case—
(a) no payment in respect of the land remediation tax credit for the period need be made before the officer's enquiries are completed (see paragraph 32 of Schedule 18 to FA 1998), but
(b) an officer may make a payment on a provisional basis of such amount as the officer thinks fit.
(6) No payment need be made in respect of the land remediation tax credit if the company has outstanding PAYE and NIC liabilities for the period.
(7) A company has outstanding PAYE and NIC liabilities for an accounting period if it has not paid to an officer of Revenue and Customs any amount that it is required to pay—
(a) under PAYE regulations, or
(b) in respect of Class 1 national insurance contributions,
for payment periods ending in the accounting period.
(8) “Payment period” means a period—
(a) which ends on the 5th day of a month, and
(b) for which the company is liable to account for income tax and national insurance contributions to an officer of Revenue and Customs.