Land remediation relief

The Government announced changes to land remediation relief in the 2008 Budget and Pre-Budget report.

In the light of comments received HMRC say in Revenue and Customs Brief 23/09 that the primary legislation will be amended to allow the Treasury to specify by Order circumstances in which companies can elect for capital expenditure to be a revenue deduction where the contamination was not present at acquisition.

HMRC add that a number of those who commented on the draft primary legislation suggested the regime be extended to cover the costs of eradicating other naturally occurring substances or living organisms.

In no case is there compelling evidence that the substance or plant posed a significant barrier to the re-use of previously developed land.

The Government therefore does not propose to extend the relief any further.

Comments on the draft secondary legislation should be submitted by 30 June...