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D1.509 Land remediation relief—election to deduct capital expenditure

Where capital expenditure is incurred by a company on qualifying land remediation, it can elect for the expenditure to be allowed as a 100% deduction in calculating its taxable profits provided certain conditions are met.

The capital expenditure is (if the company so elects by written notice) allowed as a deduction in computing the profits of the trade or business for the accounting period in which the expenditure was incurred (and may also attract the enhanced deduction described in D1.510)¹. Essentially, this means that 100% relief is available on the capital expenditure and a further 50% enhanced deduction, giving an overall deduction of 150% on the qualifying spend. There are anti-avoidance provisions (see D1.515) for manufactured or inflated claims to the relief.

An election may be made by a