Land remediation relief (LRR) is an underutilised Corporation Tax relief for property developers, investors and property owners who acquire land and property in a contaminated state and bring it back to productive use.

LRR

It offers relief equivalent to 150% of the revenue expenditure and capital expenditure to clean up and recover the acquired land or property, and any action taken to prevent, minimise, remedy, or mitigate the effects of any harm caused by the contamination.

It’s available to limited companies of all sizes and in any sector. There is no lower limit to the amount of expenditure required to qualify and a claim can be made up to six years after the year in which the expenditure is incurred.

LRR Tax Relief Calculator

How much have you spent on LRR activities?
Total tax relief amount
100000 of expenditure
£10,000
£20,000
£35,000
£50,000
£75,000
£100,000
£150,000
£250,000
£500,000
£750,000
£1,000,000
Figures correct as of April 2021.

Use our land remediation relief calculator to discover how much you could reclaim.

Land remediation relief is available to all limited companies, offering the following benefits:

Revenue expenditure

Where revenue expenditure is incurred on cleaning up contaminated or derelict land and buildings, the company can achieve an additional tax saving of £9.50 for every £100 spent.

Capital expenditure

Where qualifying capital expenditure is incurred, the company can opt to treat the expenditure as revenue expenditure. In most scenarios, this takes expenditure that has been accounted for on the company’s balance sheet and which would not have been eligible for capital allowances and allows the company to take a full revenue deduction for it. The saving achieved for capital expenditure can therefore be £28.50 for every £100 spent.

For land remediation relief to apply, contamination must have been caused as a result of industrial activity, including mining or quarrying, manufacturing, utility supply or ongoing construction work. Additionally, the contamination must be seen to be causing relevant harm, or have the potential to cause relevant harm to humans or animals, or have the potential to significantly pollute groundwater, streams, rivers or coastal waters.

If contaminated land isn’t caused by industrial activity, there can only be three other specific contributing factors, which make the land suitable for remedial relief, which are:

  1. Japanese Knotweed
  2. Radon
  3. Naturally occurring arsenic and arsenic compounds

Qualifying expenditure includes:

  • Professional fees, including surveys
  • Fencing
  • Site security
  • Excavations
  • Staffing costs
  • Contractor costs

We recognise that every land remediation situation is unique, so we provide tailored, pragmatic solutions to your circumstances, supporting you whilst you make your own claim or preparing your entire claim for you.

In short, many businesses perform land remediation relief work without even knowing it, yet the potential business benefit is huge. Don’t miss out.

SPEAK TO AN EXPERT

David Herd
David Herd
Group Partner
Martin Frain
Martin Frain
Tax Advisory Consultant

For more information about how champion accountants can help,

Contact your local champion office today.