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HM Revenue and Customs Brief 23/09


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Issued 31 March 2009

Changes to Land Remediation Relief: Publication of draft Regulations


This Revenue & Customs Brief is of interest to bodies liable to Corporation Tax carrying out remediation work on land in the UK.

At the Pre-Budget Report, the government announced changes to Land Remediation Relief and published draft primary legislation for comment. In this brief, HM Revenue & Customs (HMRC) is publishing for comment Draft Regulations (41K) under powers contained in the new legislation.


At Budget 2008 and at the Pre-Budget Report, the government announced changes to Land Remediation Relief.

Details of the proposed amendments to Land Remediation Relief, together with the draft primary legislation, were published in a Technical Note at the Pre-Budget Report.

In the light of comments received, 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. These powers are contained in draft section 1147 (3A) and (3B).

HMRC is publishing for comment draft regulations under powers contained in the draft legislation published at the Pre-Budget Report:

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.

HMRC will shortly publish its draft guidance on the revised Land Remediation Relief to give interested parties the opportunity to comment.

Comments on the draft secondary legislation should be submitted by 30 June 2009 to:

Brian Stokes
Room 3/36
100 Parliament Street
Telephone: 020 7147 2546

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Crown Copyright 2009.

A licence is need to reproduce this article and has been republished for educational / informational purposes only. Article reproduced by permission of HM Revenue & Customs under the terms of a Click-Use Licence. Tax briefs are updated regularly and may be out of date at time of reading.

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Article Published/Sorted/Amended on Scopulus 2009-03-31 14:45:41 in Tax Articles

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