Land remediation relief

A number of changes are to be made to this relief following the consultation undertaken in 2007 on 'Tax incentives' for development of brown-field land.

Baker Tilly analysis

Draft legislation has been published that extends Land Remediation Relief on specified work. It also refocuses the relief on contamination by industrial activity . In detail, the relief will apply in remediating land that has been derelict since 1 April 1998. We are not surprised as the Consultation document provided a strong steer in this direction.

In detail

The changes will be included in the Finance Bill 2009 and will take effect for expenditure incurred on or after 1 April 2009. The qualifying costs are expenditure on the removal of:

• post-tensioned concrete heavyweight construction;
• foundations of buildings or other structures or machinery bases;
• reinforced concrete pilecaps;
• reinforced concrete basements; or
• underground pipes or other apparatus for the supply of electricity, gas, water or telecommunication services or for drainage or sewerage.

The legislation will also include power to:

• make secondary legislation to allow relief in relation to natural occurring contaminants such as radon, arsenic and Japanese Knotweed
• exclude expenditure that a company is required to undertake under a statutory provision.