Land Remediation Relief (LRR) For The UK

Enquire now about land remediation tax relief

Land Remediation Tax Relief UK

Land remediation relief is a deduction of corporation tax. This enables eligible businesses to achieve a tax deduction of 150%. People who can claim LRR include developers, commercial property owners and investors that are completing remediation of contaminated land. Qualifying costs include treating buried structures, removing asbestos, Japanese knotweed and arsenic, and the treatment of harmful organisms.

What Is Qualifying Expenditure?

The taxable profits must be from the decontamination of land and buildings that has been acquired from a third party. To qualify for land remediation tax relief, there are a few rules from the government:

1. Land or buildings are in a contaminated state if there is contamination present as a result of industrial activity, such that:

it is causing relevant harm; or
there is a serious possibility that it could cause relevant harm, or
it is causing, or there is a serious possibility that it could cause, significant pollution in the groundwater, streams, rivers or coastal waters.

2. The land is in the UK

3. The expenditure incurred was not from grant funding or any discounts made

4. The claimant has a major interest (freehold or a minimum lease of 7 years).

Relief is given for removing the following structures left from any previous occupation of the site:

post tensioned concrete heavyweight construction
building foundations and machinery bases
reinforced concrete pilecaps
reinforced concrete basements
below ground redundant services (gas, water electricity and telecommunications).

What Types Of LRR Are There?

The types of land remediation relief are as follows:

Owner occupier / investor rate – 150%

Developer rate – 50%

For loss making companies cash from HMRC can be claimed – 24%

The Benefits Of Claiming Land Remediation Relief

LRR gives businesses a deduction of 100%, plus an additional deduction of 50% for qualifying expenditures.

By acquiring land remediation relief, developers, investors and property owners are able to substantially reduce the amount of taxes and other financial obligations related to the property. The government allows for land remediation tax relief as a way of encouraging businesses to bring abandoned and derelict lands back to life.

Not only is this beneficial in terms of money, but also pushes people to revitalise damaged, empty land. This in turn will create a healthier environment, help build communities, boost the area and improve cash flow.

Claim Land Remediation Relief With Us

The capital expenditure will be given in the accounting period that the money is spent (within 2 years). If the relief is given as revenue spend, the relief is given in the year that the land or property is sold.

If you are looking to claim land remediation relief then get in touch with Veritas Noble. We are a team of funding specialists with experience claiming both LRR and R&D tax credits. Our clients include a range of businesses across the UK, spanning from a variety of sectors. With our 100% success rate, you can have peace that your relief is in the right hands. Simply give us a call on 01327 317561 or email info@veritasnoble.co.uk to start the tax reduction process.