CIRD61005 | Land Remediation Relief: what is "land in a contaminated state"? - land in a contaminated state

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

FA01/SCH22/PARA3

Land is in a contaminated state for the purposes of Land Remediation Relief, if, and only if, substances in, on or under the land are actually or potentially causing:

• harm, or

• the pollution of controlled waters.

Nuclear sites are specifically excluded from the definition of “land in a contaminated state” see CIRD60115.

Work carried out as a precaution, without evidence that a substance was present, does not qualify for relief.

“Substance”

FA01/SCH22/PARA31 (1)

A “substance” for the purposes of Land Remediation Relief is any natural or artificial substance, whether in solid or liquid form or in the form of a gas or vapour.

Until 24 November 2008 HMRC took the view that the term “substance” could not include a life-form. On 24 November 2008, however, HMRC published a change of view, accepting that a plant can be a substance for the purposes of Land Remediation Relief. A copy of the change of view statement issued on 24 November 2008 is at CIRD61020.

For periods before 1 April 2009, Land Remediation Relief did not distinguish between substances that were present as a result of industrial activities and those that were present as a result of naturally occurring processes.

“Harm”

FA01/SCH22/PARA31 (1)

For periods ending on or before 31 March 2009, “Harm” means:

• harm to the health of living organisms,

• interference with the ecological systems of which any living organisms form part,

• offence to the senses of human beings, or

• damage to property.

The likelihood of harm being caused will vary according to the land use.