CIRD61595 | Land Remediation Relief: What is "land in a contaminated state"? Relevant Contaminated Land Remediation: Abortive methods of remediation

CTA09/S1146

If a company carries out an options appraisal and decides on a remediation strategy that subsequently proves unsuccessful, then Land Remediation Relief is still available on the expenditure incurred.

Example:

Following an appraisal of the options, F Ltd decides to install a new type of in ground barrier to contain contamination. The validation process shows that the method is not entirely successful and, following further advice, F Ltd decides to replace the barrier with one of a different type. F Ltd is successful in recovering 80% of the cost of the failed system from advisors and contractors.

F Ltd can claim Land Remediation Relief on the 20% of the costs of the abortive expenditure. It cannot claim on the remaining 80% of the cost that was reimbursed.

F Ltd will be able to claim Land Remediation Relief on the replacement barrier.