Conditions for claiming land remediation relief

Northern Gas Networks appealed against HMRC’s decision to refuse its claim for land remediation relief (FA 2001 Sch 22). In essence the taxpayer claimed relief in respect of expenditure incurred in replacing and improving the iron mains pipes under private streets.

The First-tier Tribunal dismissed the taxpayer’s appeal.

The Upper Tribunal considered first NGN’s argument that the contaminated state of the relevant land arises because of the combination of iron pipes under the relevant land and the gas transported within those pipes. The judge said the problem with this was that parliament specified that relief was not due when the land is contaminated wholly or partly as a result of the claimant company’s actions. Even though NGN had not laid the pipes the contamination arose partly as a result of the gas it was pumping through them.

On NGN’s assertion that it had not choice but to flow gas...