Working in the construction or property sector and looking for valuable land remediation tax relief? This article from Williamson and Croft gives you the complete rundown of everything you need to know about Land Remediation Relief (LRR), answering all your questions from what it is to the qualifying criteria.
Accountancy experts with a specialism in tax, we can help your business navigate the complexities of LRR and earn the financial relief you earn. To optimise your cash flow with expert insight from professionals with over a decade of experience in the industry, contact Williamson and Croft today.
What is Land Remediation Relief?
LRR is a tax relief that incentivises companies to develop and repurpose derelict land or buildings that are currently unused. This relief applies to expenditure on the following activities:
- Asbestos removal.
- The removal of natural contaminants like Japanese Knotweed, radon or arsenic.
- The cleaning of contaminated land as a result of industrial activity and the removal of contaminated soil or water.
- The removal of dangerous buried structures.
Who does this benefit?
Property Investors: They can receive a tax saving of £28.50 for every £100 spent on relevant activity, thanks to the 150% qualifying LRR.
Property Developers: They can receive an additional 50% deduction for a tax saving of £9.50 for every £100 spent on LRR. This is particularly useful as it comes in addition to the available 100% revenue deduction.
Who qualifies for Land Remediation Relief?
If you think that you might be eligible for Land Remediation Relief, get in touch with us and we can help you through the application process. Not sure if you qualify, consider if the following scenarios apply to you:
- Have you performed remedial works?
- Has your company demolished a building housing contaminating materials?
- Have you owned or purchased derelict land since April 1998?
- Have you purchased a plot of land that has seen industrial use in the past?
- Have you purchased a site in the UK that is in need of remediation?
What kind of work is eligible for LRR?
The eligibility criteria for LRR allowances are fairly broad, including a range of different activities that all share the common ground of rejuvenating a previously derelict or potentially dangerous area of land. The kind of eligible work includes any of the following activities:
- Asbestos removal: One of the most common claims, relief from LRR can be used to pay environmental consultants, engineers and surveyors.
- The removal of buried or derelict structures: Costs that are incurred in the destruction and removal of derelict or buried structures can be used to claim for LRR.
- Industrial contaminants: The physical removal of historic contaminants and chemicals, such as hydrocarbons and heavy metals, as a result of industrial activity.
- The removal of natural contaminants: The removal or disposal of natural substances that pose a risk to human health, such as methane, arsenic or radon.
- Japanese knotweed: All costs associated with the removal of this damaging invasive species can be claimed back through LRR, including ongoing surveying and testing.
Looking for some guidance?
Still wondering how you can claim for LRR? Contact Williamson and Croft and we can help you through the process, guiding you through the legislation to decide whether you’re eligible and how much you might be able to reclaim. Experts in everything from accountancy to R&D and Innovation taxes, we can help you optimise your cash flow and streamline your operations.
To find out more about what we can do, contact our team of specialists now and start upgrading your performance.