1.This clause allows waste disposal firms taking over sites previously run by another waste disposal operator to claim tax relief for their predecessor’s site preparation expenditure. It applies on or after 21^st March 2000.

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2. Subsection (1) defines the target of the clause setting out that it applies where site preparation expenditure has been incurred on a waste disposal site in the course of carrying on a trade and on or after 21^st March 2000 the trade relating to that site ceases and is taken over by someone else.

3.Subsection (2) states that where the conditions in subsections (3) and (4) are met then for the purposes of S91B of the Income and Corporation Taxes Act 1988 allowances should be given to the person acquiring the site as though they had done everything that the previous owner did. However subsequent allowances are only to be given to the new trader. S 91B gives tax relief for the cost of preparing a waste disposal site in relation to the volume of the site used up.

4.Subsection (3) stipulates that the whole of a waste disposal site must be transferred but provided that the new trader holds an interest in the whole site it need not be identical to the interest held by the old one.

5. Subsection (4) states that the new trader must hold a proper licence at the time they first deposits waste on the site.

6. Subsection (5) provides that the expressions used in the clause mean the same as those in S91B.

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7. Section 91B of the Income and Corporation Taxes Act 1988 allows the operator of a waste disposal site to claim a deduction from their taxable profits for the costs incurred in preparing the site for waste disposal operations.

8. The operator must be properly licenced and the deduction is proportional to the volume of the site used up by waste disposal during that tax period. At the moment only the person who incurred the expenditure and first dumped waste on the site is entitled to claim this relief.

9. This clause will allow another waste disposal operator who takes over the site to claim relief for their predecessor’s site preparation expenditure. In order to make a claim the new operator must also be properly licenced at the time they first deposit waste on the site.

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