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This valuable incentive helps UK companies claim tax relief on qualifying expenditure incurred in dealing with contaminated or derelict land and buildings.
Land remediation relief (LRR) was introduced to encourage landowners (including leaseholders and developers) to bring back into use land and buildings in the UK that had been blighted by previous use for industrial purposes.
Currently, many developers and property occupiers are missing out on the benefits of the scheme as they are unaware that the work they are doing to ‘clean up’ or remediate contaminated or derelict land and buildings could qualify for this valuable incentive.
The UK government allows businesses who are subject to Corporation Tax in the UK to claim land remediation relief of up to 150% on qualifying expenditure they incur, when they remediate land (including buildings) they acquire or lease in a contaminated or derelict state explained below: Contaminated Land – Land (and building) is in a contaminated state if there is something in, on or under it which causes “relevant harm”, or there is a serious possibility that “relevant harm” will be caused. The contamination must be the result of an industrial activity unless the contaminant is arsenic, radon, or Japanese knotweed – these can be present naturally. Derelict Land – This is land (and building) which is out of productive use, and incapable of being brought back into productive use unless buildings or structures on it are removed. Dereliction must be in existence on or before 1 April 1998. Relevant expenditure includes removal of structures such as relating to foundations and below ground redundant services.
LRR is a form of tax relief that provides up to 150% tax deduction to companies in order to incentivise them to remediate dereliction or contamination such as Japanese knotweed, asbestos, radon, arsenic. The remediation works, may form part of new developments or refurbishment of existing properties. This means that companies can deduct the value of the allowances from their profit, whilst calculating their tax liability. Other key points are as follows:
Our land remediation relief team of qualified specialists with diverse experience and multidisciplinary construction, engineering, surveying, accounting and tax advisory skills, leverage their expertise to maximise cash saving benefits for businesses who incur land (and buildings) remediation expenditure. Throughout the remediation expenditure review process, we work closely with companies to identify all qualifying expenditure. We however work in such a way that minimises their involvement in the review process, such that they can focus on their core business activities and avoid it being disrupted.
Do you have any planned or recent new development or property refurbishment works where you encountered and remediated dereliction or contamination in land and buildings? We can provide an end-to-end consultancy service, aimed at identifying qualifying expenditure and corresponding valuable tax relief. This includes from technical and financial discovery through to preparing and issuing the claim report.
We are an international consulting firm which helps businesses leverage financial incentives to accelerate their growth and achieve long lasting performance.
With a multifaceted skillset comprising of construction, engineering, surveying, accounting and tax advisory, our dedicated land remediation team is uniquely placed to apply their technical expertise and experience in identifying and maximising qualifying remediation expenditure. This subsequently leads to valuable cash tax savings and improved business cash flow.
Our information gathering processes ensure that all possible qualifying costs are included. We always keep compliance front of mind and have been delivering optimal services for over 24 years. This provides our clients with the peace of mind that they will receive the maximum financial benefit without unnecessary risks.
Years of experience
Head of Capital Allowances & Land Remediation
Head of Consulting
Our highly experienced in-house teams constantly monitor market development and government funding opportunities to provide the most up-to date saving solutions. We offer support around a number of government schemes including:
We support businesses to claim valuable tax relief on innovative projects.
We help our clients claim capital allowances on qualifying capital expenditure they incur.