CIRD61010 | 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.

Example:

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.