As of 1 December 2008, developers can no longer apply for Landfill Tax Exemption on contaminated land. What are the options open to those that didn’t get an application in on time?

Now that Landfill Tax Exemption has been removed, it’s important for developers to investigate the innovative remediation techniques that allow for clean up of brownfield land without the need for landfill waste (and all its associated costs). While the number of specialist companies offering such solutions are relatively limited, they offer a wealth of expertise in the application of alternative solutions. These solutions can range from simple bioremediation techniques to complex thermal solutions such as steam injection - and all provide sustainable benefits when compared to the previously common alternative of landfill disposal.

In terms of recovering clean-up costs, Land Remediation Relief provides the best option for companies that are dealing with contaminated land. Land Remediation Relief provides relief from corporation tax through a deduction to profits chargeable to corporation tax at a rate of 150% of the qualifying expenditure. Where possible, businesses should ensure that the expenditure for land remediation is incurred by a company that can claim this tax relief. To qualify for relief, the land must have been acquired by the company in a contaminated state, and must be set for use by the company for the purposes of its trade or property letting.

From 1 April 2009, the government plans to extend the scope of Land Remediation Relief. Long term derelict land – that which has lain in a continuous state of dereliction since 31 March 1998 – will become eligible for tax relief. In addition, Land Remediation Relief will be extended to specifically include the removal of Japanese knotweed – provided it is not landfilled, but subject to treatment techniques.