Land Remediation Relief: What is "land in a contaminated state"?: Examples
This guidance applies to expenditure incurred on or before 31 March 2009.
This example should be read together with the guidance in CIRD61005.
A Ltd acquires a derelict site from an unconnected party, that:
- is contaminated by asbestos from a previous industrial use;
- has an infestation of Japanese knotweed caused by fly-tipping;
- has a shaft dug into the site where machinery was previously installed; and
- has high levels of naturally occurring radon.
A Ltd builds a office building on the site, to prepare the site it carries out work including
- clearing up the asbestos and removing the waste to landfill;
- chemical eradication of the Japanese knotweed;
- filling in the hole; and
- installing a membrane to prevent radon seeping into the new building
A Ltd can claim Land Remediation Relief on the removal of asbestos and Japanese knotweed as these are substances present in or on the land.
A Ltd can claim elect to treat the cost of installing the membrane (including the cost of the membrane) as a revenue expense and claim Land Remediation Relief as it is preventing harm by a substance in the ground.
A Ltd cannot claim Land Remediation Relief on filling in the hole, as there is no substance present causing harm, see CIRD61030.