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.
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.
LRR Tax Relief Calculator
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:
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.
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.
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:
- Japanese Knotweed
- Naturally occurring arsenic and arsenic compounds
Qualifying expenditure includes:
- Professional fees, including surveys
- Site security
- 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.