CIRD60075 - Land Remediation Relief: Capital expenditure: »Ê¹ÚÌåÓýapp election

FA01/SCH22/PARA1 (6), (7) and (8)

CTA09/S1148

An election to treat capital expenditure as a deduction must:

  • Specify the accounting period for which it is made;
  • Be made in writing to an officer of Revenue & Customs;
  • Be made within two years of the end of the accounting period to which it relates.

Example:

Z Ltd operates a chain of supermarkets in the UK. It acquires land in a contaminated state on which to build a new store and incurs £50,000 capital expenditure on qualifying land remediation in its accounting period ended 31 December 2010.

Z Ltd must make its election by 31 December 2012 if it wishes to treat the capital expenditure of £50,000 as a deduction in computing its trading profit (or loss) for corporation tax purposes.

»Ê¹ÚÌåÓýapp legislation does not specify any particular form for the election. Officers of HMRC will accept timeous computations reflecting the claim for the capital expenditure to be treated as a revenue deduction to be sufficient notice of election.

For further guidance on claims and elections for Land Remediation Relief see CIRD60060.