CIRD60150 - Land Remediation Relief: Exclusions: Polluter Pays: Polluter retains an interest in the land - 1 April 2009 onwards
CTA09/S1150 (2) & (3)
Land Remediation Relief is not available if the party (or a connected party) responsible for the land being contaminated or derelict retains an interest in the land.
An interest in the land is retained:
- where the polluter disposes of the legal title to the land, whether freehold or leasehold, but retains a beneficial interest in it, or
- where the polluter grants a long lease of the site but retains a reversionary interest, or
- where the entire legal (or beneficial) interest in the property is sold, but as part of the contract for sale the polluter is granted a right (an option) to be offered the property should the purchaser subsequently wish to sell.
Example:
A Ltd was responsible for an area of land being polluted. A Ltd grants a 15 year lease over the land to B Ltd, which decontaminates the land before it commences operations from the site.
Although B Ltd has a major interest in the land (see CIRD69015) it cannot claim Land Remediation Relief as A Ltd, its landlord, was responsible for the pollution and A Ltd retains an interest in the land.
The position would be the same if B Ltd had granted a sub-lease to C Ltd and it was C Ltd who cleaned the site up. C Ltd would be unable to claim the relief as A Ltd, which caused the site to be contaminated, retained an interest in the site.
Example:
A Ltd was responsible for an area of land being polluted. It sells the land to an unconnected third party, B Ltd, which decontaminates the site. A Ltd has an option to reacquire the land after it has been cleaned up.
Although B Ltd has a major interest in the land (see CIRD69015) it cannot claim Land Remediation Relief. A Ltd was responsible for the pollution and has an option over the land; that is A Ltd retains an interest in the land.