Land Remediation Relief: Exclusions: Arrangements put in place which either create or enhance a claim
There is anti-avoidance legislation to prevent:
- manufactured claims, or
- claims being inflated.
Where a company enters into arrangements wholly or mainly to create or enhance a claim then the amount of relief is restricted to the amount that would have been available had they not entered into those arrangements.
This applies where a company enters into an arrangement wholly or mainly to obtain:
- Land Remediation Relief to which it would not otherwise be entitled, or of a greater amount than that to which it would otherwise be entitled;
- a deduction for capital expenditure which would not otherwise be allowed, or of a greater amount than would otherwise be allowed, or
- a Land Remediation Tax Credit to which it would not otherwise be entitled, or of a greater amount than that to which it would otherwise be entitled.
The term arrangement is given a broad definition and includes any scheme, agreement or understanding, whether or not legally enforceable.
This is an anti-avoidance provision. Before entering into argument, Officers of HMRC should make a report of the facts to CT&VAT (CT Structure).