»Ê¹ÚÌåÓýapp

This section provides examples of how the guidance at CIRD63100 applies.

Example:

A Ltd purchases land that is contaminated with oil that has leaked from storage tanks.

A Ltd engages the services of a sub-contractor, B Ltd.

B Ltd excavates the soil, takes it away and subjects it to a process of bioremediation. At the end of the process B Ltd replaces the soil.

A Ltd removes and fills in the storage tanks.

»Ê¹ÚÌåÓýapp payment made by A Ltd to B Ltd qualifies because the whole of the work carried out by B Ltd is for the purpose of relevant land remediation. »Ê¹ÚÌåÓýapp work is done only because the soil is contaminated.

A Ltd cannot claim Land Remediation Relief for land in a contaminated state on the cost of removing the storage tanks and infilling. This is not a cost of removing the contamination. If the tanks are removed on or after 1 April 2009 relief may be available under Land Remediation Relief for long term derelict land, see CIRD62000 onwards.

Example:

C Ltd is re-developing a brown-field site as a residential estate. »Ê¹ÚÌåÓýappre are contaminants in the soil and C Ltd installs a membrane to prevent the contaminants migrating to the surface. C Ltd also imports top-soil and sub-soil for the gardens.

»Ê¹ÚÌåÓýapp cost of the top-soil and sub-soil does not qualify for Land Remediation Relief as C Ltd would have imported the soil, to improve the amenity value and provide a growing medium for garden plants and vegetables, whether or not the site was contaminated. So there is no additional cost caused only by the remediation. »Ê¹ÚÌåÓýapp cost of the membrane (or other break-layer) installed beneath the soil qualifies for Land Remediation Relief as it is only installed for the purpose of preventing harm that might otherwise ensue.

Example:

D Ltd is re-developing a brown-field site as a residential estate. »Ê¹ÚÌåÓýappre are contaminants in the soil and D Ltd imports topsoil to create a 1200mm capping layer over the contamination, double the depth that D Ltd normally uses to create amenity areas.

In this example, rather than using a membrane D Ltd has created a barrier using a greater depth of topsoil. Whilst this will still qualify for Land Remediation Relief, D Ltd cannot claim the whole cost of importing the top-soil. D Ltd would have imported topsoil to create a layer 600mm deep to improve the amenity value and provide a growing medium for garden plants and vegetables, whether or not the site was contaminated. D Ltd can claim the cost of the additional 600mm as that expenditure was only incurred because the land is in a contaminated state.