Other cases that caught our eye: 22 July 2022

Land remediation relief

Companies which clear contaminated land are subject to stringent conditions entitled to an enhanced corporation tax deduction for the costs incurred. One of those conditions is that the contamination was caused by something which the (or a related party) had done itself (or had failed to do). The issue in Northern Gas Networks Ltd v HMRC [2022] EWCA Civ 910 (1 July 2022) concerned old underground iron pipes. If those pipes fracture gas could escape and cause an explosion: it was accepted that this was land contamination with the scope of the relief. The question was whether the company itself had contributed to the contamination. It argued that it was the state of the iron piping that was the cause of the contamination. It had not been responsible for its installation and therefore relief was not restricted. HMRC argued that it was the gas or...