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HMRC internal manual

Corporate Intangibles Research and Development Manual

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Land Remediation Relief: What is "land in a contaminated state"?: Different grades of cement

This guidance applies to expenditure incurred on or before 31 March 2009.

FA01/Sch22/Para4

It may be necessary to use a different quality of cement due to the presence of contaminants, such as iron sulphates, in the soil.

Some of these contaminants are present by natural process, others as a result of industrial activity. For expenditure incurred up to 31 March 2009, it does not matter whether the contamination is present as a result of natural or industrial processes.

Land Remediation Relief is available for the additional cost arising from having to use a higher grade of cement or concrete because of the risk of harm to the building or structure.

HMRC accept that the “harm” test is satisfied where a higher grade of concrete or cement is required to comply with the appropriate British Standard.

Example:

X Ltd acquires a site for re-development. The desk study shows that the site had been previously used as a dump for rubble by an unconnected developer. Further work shows that the site has high levels of sulphate. X Ltd uses higher grade cement in line with the British Standard.

X Ltd can claim Land Remediation Relief on the additional cost of using the higher grade cement as the sulphate contamination poses a potential threat to the building. X Ltd has acted in accordance with the British Standard applicable at the time.