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(1) This section applies for the purpose of calculating the profits of a trade if the person carrying on the trade makes a site restoration payment in the course of carrying it on.
(2) A deduction is allowed for the unrelieved amount of the payment.
(3) The deduction is allowed for the period of account in which the payment is made.
(4) The unrelieved amount of a site restoration payment is the amount of the payment, less—
(a) any amount of the payment that represents expenditure for which an allowance has been, or may be, made under the enactments relating to capital allowances, and
(b) any amount of the payment that represents expenditure for which a deduction has been allowed in calculating the profits of the trade of an earlier period of account.
(5) A “site restoration payment” means a payment made in connection with the restoration of a site (or part of a site) in order to comply with—
(a) a condition of a waste disposal licence (as defined in section 167(1)),
(b) a condition imposed on the grant of planning permission to use the site for the collection, treatment, conversion and final depositing of waste materials or for the carrying out of any of those activities, or
(c) a relevant planning obligation.
(6) For this purpose “a relevant planning obligation” means—
(a) an obligation arising under an agreement made under section 106 of the Town and Country Planning Act 1990 (c 8) (as originally enacted) or any corresponding provision for the time being in force in Northern Ireland,
(b) an obligation arising under an agreement made under section 75 of the Town and Country Planning (Scotland) Act 1997 (c 8),
(c) a planning obligation entered into under section 106 of the Town and Country Planning Act 1990 (as substituted by section 12 of the Planning and Compensation Act 1991 (c 34)) or any corresponding provision for the time being in force in Northern Ireland, or
(d) a planning obligation entered into under section 299A of the Town and Country Planning Act 1990 or any corresponding provision for the time being in force in Northern Ireland.
This Act comes into force on 6 April 2005 and has effect, for the purposes of income tax for the year 2005–06 and subsequent tax years, and for the purposes of corporation tax for accounting periods ending after 5 April 2005: see s 883; for transitional provisions and savings see Sch 2 hereto.