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This section applies to expenditure incurred on or after 1 April 2009

CTA09/S1145 (2)(b)

Land Remediation Relief is intended to assist in bringing back into productive use land that has been blighted by contamination from previous industrial activity.

»Ê¹ÚÌåÓýapp requirement is that the contamination is present as a result of industrial activity.

“Industrial activityâ€� includes, but is not limited to, any activity within the UK standard industrial classification code (SIC) 92 categories C, D, E & F. »Ê¹ÚÌåÓýappse are:

• Mining and quarrying - including extraction of fuels, minerals and oils; or
• Manufacturing - including fuel processing and production, manufacture of chemicals and man-made fibres, the metal goods, engineering and vehicles industries and other manufacturing industries; or
• Supply of electricity, gas and water - the production and distribution of electricity, gas and water; or
• Construction industry.

»Ê¹ÚÌåÓýapp requirement that contamination is from industrial activity does not mean that the site must have been in use in an activity within these categories. Contamination may be present as a result of the use of the products of an industrial activity even where the land has been used for other purposes.

For example, asbestos is present in a building, as a result of industrial activity (the construction industry) even where the building is used as a shop or office.

Example:

A Ltd acquires, from an unconnected third party, offices which contain asbestos panelling. »Ê¹ÚÌåÓýappy are advised that the panels have not been maintained in accordance with the guidelines and that the panels are now in a state that requires removal.

Although the building has not been used for an industrial activity, the asbestos is present as a result of industrial activity (the construction industry). A Ltd is not the polluter and acquired the property in a contaminated state. A Ltd can claim Land Remediation Relief on the additional costs incurred in removing the asbestos panelling.

Other activities may qualify as “industrial activities�:

Example:

B Ltd acquires, from an unconnected third party, a farm complex that had recently fallen out of use. Before they can re-develop the site they have to remove contamination due to spillages of a now banned chemical herbicide.

B Ltd can claim Land Remediation Relief because the chemical contamination caused to the land is a consequence of the agricultural industry.

For guidance on how to establish whether contamination is present as a result of industrial activity see CIRD61255.