CIRD60120 - Remediation of contaminated land: artificial arrangements

Where a company enters into arrangements wholly or mainly for a disqualifying purpose then, to the extent that it is attributable to such an arrangement, you should disregard a transaction in determining the amount of:

• land remediation relief.
• deduction for capital expenditure.
• entitlement to land remediation tax credit.

An arrangement is entered into mainly or wholly for a disqualifying purpose if its main object, or one of its main objects, is to enable a company to obtain:

• land remediation relief to which it would not otherwise be entitled, or of a greater amount than it would otherwise be entitled, or
• a deduction for capital expenditure which would not otherwise be allowed, or of a greater amount than would otherwise be allowed, or
• land remediation tax credit to which it would not otherwise be entitled, or of a greater amount than it would otherwise be entitled.

(FA01/SCH22/PARA29).

Arrangement

Arrangement includes any scheme, agreement or understanding, whether or not legally enforceable.