CIRD60055 - Remediation of contaminated land: deduction for capital expenditure: exceptions

A company cannot elect to deduct capital expenditure on the remediation of contaminated land in the following circumstances:

• The land acquired is in a contaminated state as a result of anything done, or omitted to be done, at any time by the company, or a person with a relevant connection to the company. See CIRD60175 for what constitutes a person with a relevant connection to the company for this purpose (FA01/SCH22/PARA1 (5)).
• The expenditure, for whatever reason, has been allowed as a deduction in computing the profits of the trade or Schedule A business in an earlier accounting period of the company (FA01/SCH22/PARA1 (4a)).
• The expenditure qualifies for capital allowances, irrespective of whether a claim for capital allowances is made (FA01/SCH22/PARA1 (4b)).
• The capital expenditure is incurred before 11 May 2001 (see CIRD60050).