There are five basic conditions to be met in order for the expenditure to qualify for tax credit.

1. The claimant must be a UK company within the charge to corporation tax. Relief for capital expenditure is given by deeming it to be allowable as a deduction in computing the profits of the trade for the accounting period in which the expenditure is incurred.
2. Land in the United Kingdom (including buildings on the land) must be acquired in a contaminated state. The company must have a legal interest in the land and neither the company, nor anyone connected with the company, must have been responsible for polluting the site.
3. The expenditure on remediation must be incurred on a) employee costs and (b) materials, or on sub-contracted land remediation.
4. The expenditure would not have been incurred if the land had not been in a contaminated state.
5. The expenditure must not be subsidised.