Case Study – Remediation of Contaminated Land Tax Relief
Case Study – Asbestos, Fuel and Mining
A property development firm acquired an old fire station in 2015 with a view to using the site for a mixture of commercial and residential developments. The site had previously been a garage and prior to that a colliery.
Surveys carried out revealed contaminants on the site. Three 300 foot mine shafts were found that required treatment and capping to prevent contaminants from escaping the ground. Whilst the survey found they were already backfilled and capped, the previous work done was inadequate and required further soil removal and capping to meet regulatory standards. The presence of asbestos was found in numerous parts of the old fire station building, and the removal of underground tanks and the removal of petrol interceptors was necessary.
Expenditure qualifying for Remediation of Contaminated Land Tax Relief included demolition, dismantling, plant and motor hire, security, asbestos removal, survey and reports and building materials. The property developer was able to claim back over £50,000 for contamination removal.
Remediation of Contaminated Land Tax Relief provides an enhanced tax deduction for certain qualifying costs. Land and property owners (including leases with at least 7 years left to run) may claim this relief for expenditure incurred on removing or treating contaminants in their land or property, such as asbestos, radon and Japanese Knotweed, or for bringing land that has been derelict for a long time back into use.
The relief is to encourage the use of brownfield sites and to allow additional relief costs incurred in dealing with harmful substances to make land and property safer for humans, animals or for the building itself.