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HMRC internal manual

Corporate Intangibles Research and Development Manual

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.