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HMRC internal manual

Business Income Manual

Waste disposal: site restoration: expenditure not allowable: provisions

S168 Income Tax (Trading and Other Income) Act 2005, S145 Corporation Tax Act 2009

A provision for capital site restoration payments (see BIM67540) is not allowable for tax purposes. However, a provision for revenue restoration expenditure is allowable, if made in accordance with generally accepted accounting practice and sufficiently accurately quantified.

Where provisions for future site monitoring costs are allowable, the amount allowed should be discounted to reflect the fact that the expenditure may not be paid for many decades.