Land remediation relief
Draft guidance has been published on the subject of land remediation relief. This guidance is relevant to businesses liable to corporation tax that carry out work on contaminated land or land infested with Japanese Knotweed.
The new regulations are designed to extend tax incentives for developing brown-field land and specifically to bring long term derelict land back to use. Land which has been derelict since 1 April 1998 will qualify. Taxpayers will also be able to have a far better understanding of whether they are entitled to relief where contaminated land is re-developed.
Land remediation relief will be available on specified expenditure. The qualifying costs include that related to the removal of items including building foundations, reinforced concrete pilecaps and underground pipes for the supply of electricity, gas, water or telecommunication services or for drainage or sewerage
The draft guidance will apply for accounting periods commencing on or after 1 April 2009.