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Land remediation relief |
See Also
Adjustment of profit | Fixed assets | Research and development tax relief | UK property income
Select from the following headings:
Background | Developing the schedule | Completing the Schedule | Standard Sub-Schedules | Carry Forward | Related Errors
For remediation or clean-up expenditure incurred by companies on or after 11 May 2001 for the purposes of their trade or UK Property business, an enhanced deduction of 150% is available (FA 2001 s 70 & Schs. 22 &23). The new relief applies to contaminated land acquired in the UK upon which qualifying remediation expenditure is incurred.
One copy only of this schedule may be called up by using the Develop option on the 'A' schedule and then selecting Reliefs. Alternatively items of remediation expenditure, identified in the expense analysis schedules, may be linked through using the menu option Link, Land remediation relief.
In both cases a Land remediation relief schedule is generated within the 'D' series of schedules, together with a caption on the Fixed Assets schedule in which capitalised remediation expenditure should be identified. In addition a UK property income schedule is also produced .
This is similar to the Research and development schedule in terms of the user input required.
Some of the data entry cells are described in more detail:
Description/Date
The user should enter a brief description of the expenditure and the date it was incurred.
Qualifying capital expenditure
Any remediation expenditure capitalised by the company in the period, should be identified and also entered on the Fixed Assets schedule. This is eligible as either the revenue deduction under CTA 2009 s1147 or the base amount upon which the land remediation relief uplift of 50% is calculated depending upon the course of action taken.
Revenue expenditure per accounts/Disallowable
Revenue expenditure recognised in the accounts for the period should be analysed out, and disallowable expenditure identified separately. Qualifying expenditure is defined in CTA 2009 s1145, s1146, s1170-1173, s1177 . Broadly this comprises additional employee and material costs incurred as a result of the land being contaminated, and the expenditure must have not been subsidised.
From these entries the software derives the Net revenue expenditure per accounts.
Qualifying land remediation expenditure
This is computed as the total of the data entries for Qualifying capital expenditure and the Revenue expenditure net of disallowed amounts. The software in turn calculates the uplift and the sum of the uplift plus base amount.
The user should specify how much of the Total land remediation relief is eligible against the company's Property's business, the balance of which is assumed to be relievable against Trading income.
Investment companies
This schedule is identical for investment companies.
The schedule has no standard sub-schedules.
This schedule does not carry forward.
© 2009 Thomson Reuters.