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Chapter CIRD63215

Document Cited in Related
Vincent
Published date11 March 2016
Record NumberCIRD63215
CourtHM Revenue & Customs
IssuerHM Revenue & Customs
FA01/SCH22/PARA4 (5) CTA09/S1146 (4) & CTA09/S1146A (5)

Qualifying land remediation expenditure includes the cost of preparatory activities provided that the company goes on to carry out the remediation.

Preparatory activities are not qualifying land remediation expenditure if the company does not go on to carry out relevant land remediation. This means that the enhanced deduction under Land Remediation Relief is not available. The cost of the preparatory work may be a deduction under the normal rules of computing the profits, see BIM35325.

Preparatory activities are not the same as the type of work sometimes referred to as preliminaries. For guidance on preliminaries see CIRD63270

Land in a contaminated state

The type of preparatory work that qualifies is work to ascertain the level of contamination in the:

  • site itself,
  • controlled waters (see CIRD69001) affected by that land; or
  • any land adjoining the site.

The cost of an initial desk study (see CIRD61260) does not qualify for relief as this cost would have been incurred anyway as part of the planning process. If, as a result of the desk study, contamination is thought to be on the site, then the costs of further work to establish the level of contamination together with the cost of the risk assessment is...

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