• at the present time, derelict sites only get 150% relief if there is contamination (see above). That will change;
• expenditure that will qualify for tax relief will include: removal of posttensioned concrete; heavyweight construction; removal of building foundations and machinery bases; removal of reinforced concrete basements; below-ground demolition of redundant services;
• the land must be acquired by the company for the purpose of its trade or property-letting business. It must have already been ‘derelict’ at the time of acquisition and have been derelict since 31 March 1998; and
• the amount of tax relief will be the same as for remediation works on contaminated land (a corporation tax deduction of 150% of the qualifying expenditure, or a tax credit worth 16% of the losses).

The important point to note is that if expenditure (as defined above) on derelict land can be deferred until after 1 April 2009, then there may be valuable tax reliefs to be gained. Source: Pinsent Masons .© Practical Lawyer