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Link to original content: http://www.legislation.gov.uk/ukpga/2009/10/schedule/7/part/1/data.xml
http://www.legislation.gov.uk/ukpga/2009/10/schedule/7/part/1Finance Act 2009An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with finance.texttext/xmlenStatute Law Database2024-06-11Expert Participation2024-05-24 SCHEDULESSCHEDULE 7Contaminated and derelict landPart 1Amendments of Part 14 of CTA 20091Part 14 of CTA 2009 (remediation of contaminated land) is amended as follows.2In the heading of the Part, after “contaminated” insert “ or derelict ”.31Section 1143 (overview of Part) is amended as follows.2In subsection (1), after “contamination” insert “ or dereliction ”.3In subsection (7), after “contaminated” insert “ or derelict ”.41Section 1144 (“qualifying land remediation expenditure”) is amended as follows.2In subsection (1), for “E” substitute “ F ”.3In subsection (2), insert at the end “or a derelict state (see section 1145A)”.4In subsection (3), after “contaminated” insert “ or derelict ”.5For subsection (4) substitute—4Condition C is that it is—ain the case of land in a contaminated state, expenditure on relevant contaminated land remediation undertaken by the company (see section 1146), orbin the case of land in a derelict state, expenditure on relevant derelict land remediation so undertaken (see section 1146A).6In subsection (5), for paragraph (c) (and the “or” before it) substitute—cincurred in respect of relevant land remediation contracted out by the company to another person with whom the company is not connected, ordqualifying expenditure on connected sub-contracted land remediation (see section 1175).7After subsection (6) insert—6ACondition F is that the expenditure is not incurred on landfill tax.5For section 1145 substitute—Land “in a contaminated state”11451For 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—arelevant harm is being caused, orbthere is a serious possibility that relevant harm will be caused.2But land is not in a contaminated state by reason of the presence in, on or under it of—aliving organisms or decaying matter deriving from living organisms, air or water, orbanything present otherwise than as a result of industrial activity.3The 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.4In this section “relevant harm” means—adeath of living organisms or significant injury or damage to living organisms,bsignificant pollution of controlled waters,ca significant adverse impact on the ecosystem, ordstructural or other significant damage to buildings or other structures or interference with buildings or other structures that significantly compromises their use.Land “in a derelict state”1145AFor the purposes of this Part land is in a derelict state if (and only if) the land—ais not in productive use, andbcannot be put into productive use without the removal of buildings or other structures.Exclusion of nuclear sites1145B1A 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—aany site in respect of which a nuclear site licence is for the time being in force, orbany 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.3In subsection (2) “nuclear site licence”, “licensee” and “period of responsibility” have the same meaning as in the Nuclear Installations Act 1965.61Section 1146 (“relevant land remediation”) is amended as follows.2In subsection (1)—afor “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”, andbfor “and B” substitute “ to C ”.3In subsection (3)—ain paragraph (a), for “harm, or any pollution of controlled waters,” substitute “ relevant harm ”, andbomit paragraph (b) (and the “or” before it).4After that subsection insert—3ACondition C is that the activities are not—aactivities of a description specified by order made by the Treasury, orbactivities required by or by virtue of any enactment specified by such an order.3BAn order under subsection (3A) may contain incidental, supplemental, consequential and transitional provision and savings.5In subsection (5), for the words after “(and only if)” substitutebecause of something in, on or under the land by virtue of which it is contaminated land, the land is in a condition such that— asignificant pollution of those waters is being caused, orbthere is a serious possibility that significant pollution of those waters will be caused.6In the heading, after “relevant” insert “ contaminated ”.7After that section insert—“Relevant derelict land remediation”1146A1For 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—aactivities in relation to which conditions A and B are met, andbif there are such activities, relevant preparatory activity.2Condition 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.3Condition B is that the purpose of the activities is a purpose specified by order made by the Treasury.4An order under subsection (3) may contain incidental, supplemental, consequential and transitional provision and savings.5For 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).8In the heading of Chapter 2, after “contaminated” insert “ or derelict ”.91Section 1147 (deduction for capital expenditure) is amended as follows.2In subsection (2), after “that” insert “ a major interest in ”.3For subsection (3) substitute—3Condition B is that—ain the case of land in a contaminated state, the land was in a contaminated state at the time of the acquisition, andbin the case of land in a derelict state, the land was in a derelict state throughout the period beginning with the earlier of—i1 April 1998, andiithe date on which a major interest in the land was first acquired by the company or a person who was connected with the company.3AThe Treasury may by order—aspecify circumstances in which the condition in paragraph (a) of subsection (3) need not be met, orbreplace the date for the time being specified in paragraph (b)(i) of that subsection with a later date.3BAn order under subsection (3A) may contain incidental, supplemental, consequential and transitional provision and savings.101Section 1149 (additional deduction for qualifying land remediation expenditure) is amended as follows.2In subsection (2), after “that” insert “ a major interest in ”.3For subsection (3) substitute—3Condition B is that—ain the case of land in a contaminated state, the land was in a contaminated state at the time of the acquisition, andbin the case of land in a derelict state, the land was in a derelict state throughout the period beginning with the earlier of—i1 April 1998, andiithe date on which a major interest in the land was first acquired by the company or a person who was connected with the company.3AThe Treasury may by order—aspecify circumstances in which the condition in paragraph (a) of subsection (3) need not be met, orbreplace the date for the time being specified in paragraph (b)(i) of that subsection with a later date.3BAn order under subsection (3A) may contain incidental, supplemental, consequential and transitional provision and savings.111Section 1150 (no relief if company responsible for contamination) is amended as follows.2The existing provision becomes subsection (1) of that section.3In that subsection, for “state if the land is in that” substitute “ or derelict state if the land is in a contaminated or derelict ”.4After that subsection insert—2A 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—athe 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), andbthat person, or a person connected with that person, has a relevant interest in the land.3For the purposes of subsection (2) a person has a relevant interest in land if the person—aholds 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), orbhas 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.5In the heading, insert at the end “or dereliction or polluter has interest”.121Section 1161 (relief in respect of I minus E basis: enhanced expenses payable) is amended as follows.2In subsection (2), after “that” insert “ a major interest in ”.3For subsection (3) substitute—3Condition B is that—ain 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, andbin the case of land in a derelict state, the land was in a derelict state throughout the period beginning with the earlier of—i1 April 1998, andiithe date on which a major interest in the land was first acquired by the company or a person who was connected with the company.3AThe Treasury may by order—aspecify circumstances in which the condition in paragraph (a) of subsection (3) need not be met, orbreplace the date for the time being specified in paragraph (b)(i) of that subsection with a later date.3BAn order under subsection (3A) may contain incidental, supplemental, consequential and transitional provision and savings.4In subsection (4)—afor “Chapter 4” substitute “ land remediation ”, andbomit “(see section 1162)”.5Omit subsection (5).6In subsection (6), omit “150% of”.7In the heading, omit “enhanced”.8In the heading before the section omit “for qualifying Chapter 4 expenditure”.13For section 1162 substitute—Additional relief11621If 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.2For the company to obtain the relief it must make a claim.3The 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 expenses payable).4For the purposes of this Chapter “the qualifying Chapter 4 expenditure” means—athe company's qualifying land remediation expenditure for the accounting period, lessbthe amount (if any) which as a result of paragraph (a) of Step 1 in section 76(7) of ICTA is not to be brought into account at that step as expenses payable for the period.141Section 1163 (no relief if company responsible for contamination) is amended as follows.2The existing provision becomes subsection (1) of that section.3In that subsection—aafter “1161” insert “ or 1162 ”, andbfor “state if the land is in that” substitute “ or derelict state if the land is in a contaminated or derelict ”.4After that subsection insert—2A 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—athe 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), andbthat person, or a person connected with that person, has a relevant interest in the land.3For the purposes of subsection (2) a person has a relevant interest in land if—athe 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), orbhas 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.5In the heading, insert at the end “or dereliction or polluter has interest”.15In section 1165(1)(a) (meaning of “qualifying life assurance business loss”), after “1161” insert “ or 1162 ”.16In section 1169(2)(c) and (3)(c) (artificially inflated claims for relief), after “1161” insert “ or 1162 ”.171Section 1173 (expenditure incurred because of contamination) is amended as follows.2In subsections (1) and (2), after “contaminated” insert “ or derelict ”.3For subsection (3) substitute—3Subsection (4) applies—ain the case of land in a contaminated state, if the main purpose of any activities is any of those specified in section 1146(3), orbin the case of land in a derelict state, if the main purpose of any activities is any of those specified in section 1146A(3).4In the heading, insert at the end “or dereliction”.18Omit section 1174 (sub-contractor payments: introductory).191Section 1175 (“qualifying expenditure on sub-contracted land remediation”: connected persons) is amended as follows.2After subsection (1) insert—1AIn this section, a “sub-contractor payment” means a payment made by the company to the sub-contractor in respect of relevant land remediation contracted out by the company to the sub-contractor.3In subsection (2), for “sub-contracted land remediation” substitute “connected sub-contracted land remediation” for the purposes of section 1144(5)”.4In subsection (3)—ain paragraph (a), after “carrying on” insert “ or arranging for carrying on ”, andbin paragraph (c) for “incurred on” substitute “ in respect of ”.5For the heading substitute “Connected sub-contractors”.20Omit section 1176 (“qualifying expenditure on sub-contracted land remediation”: other cases).21In section 1178 (persons having a “relevant connection” to a company)—aafter “contaminated” insert “ or derelict ”, andbin paragraph (b), after “when” insert “ a major interest in ”.22After section 1178 insert—“Major interest in land”1178A1References in this Part to the acquisition of a major interest in land are to the acquisition of a freehold interest in the land or of a relevant leasehold interest in the land.2The reference in subsection (1) to the acquisition of a freehold interest in land is—ain relation to land in England and Wales, to the acquisition of an estate in fee simple absolute (whether subsisting at law or in equity),bin relation to land in Scotland, to the acquisition of the interest of an owner of land, andcin relation to land in Northern Ireland, to the acquisition of any freehold estate (whether subsisting at law or in equity).3The reference in subsection (1) to the acquisition of a relevant leasehold interest in land is to the acquisition by grant or assignment (or assignation) of—ain relation to land in England and Wales, a term of years absolute (whether subsisting at law or in equity),bin relation to land in Scotland, the tenant's right over or interest in a property subject to a lease, orcin relation to land in Northern Ireland, any leasehold estate (whether subsisting at law or in equity),in relation to which the condition in subsection (4) is met.4That condition is that—ain the case of a grant, the term of years or period of the lease is at least 7 years, andbin the case of an assignment (or assignation) the unexpired portion of the term or period is at least 7 years.23In section 1179 (definitions), omit the definitions of “harm” and “land” and the definition of “substance” (apart from the “and” at the end).