Land Remediation Tax Relief

What Is Land Remediation Relief?

Land Remediation Relief is a corporation tax relief in the UK claimable by the landowner of contaminated land or property. It was introduced to encourage landowners to clean up and restore land on brownfield sites in the UK that have been acquired from a third party in a contaminated state.

How Does Land Remediation Relief Work?

The HM Revenue and Customs (HMRC) Land Remediation Relief scheme works in a similar way to research and development (R&D) tax credits, with an uplift of expenditure or a repayable tax credit for loss-making companies. It applies to all UK companies and for both residential and commercial properties.

In a nutshell, Land Remediation Relief allows for an enhanced corporation tax relief of 150% of the qualifying costs of cleaning up contaminated land or buildings, for an owner or occupier of a property, where the property cost is held as an investment. In this case, relief is given when the cost is incurred.

If the property is held by a developer, and the costs go through the profit and loss account, a 50% uplift on the costs can be claimed on the sale of the property.

In both cases, a repayable credit in respect of the costs can be claimed.

Examples of contaminants in land and buildings include radon, arsenic, asbestos, invasive plants (such as Japanese knotweed), buried structures and redundant services, and harmful organisms. Land Remediation Relief is therefore beneficial for property developers who are having to carry out remediation of contaminated land and buildings, including removal of asbestos and Japanese knotweed.

Derelict land can also qualify for Land Remediation Relief.

Is My Business Eligible for Land Remediation Relief?

To qualify for Land Remediation Relief, the land must be in the UK, and landowners and property owners must:

  • Be subject to UK corporation tax
  • Have bought the freehold or leasehold with seven or more years remaining
  • Not be the original polluter

How Do I Make a Land Remediation Relief Claim?

A claim for Land Remediation Relief must be made in a company tax return. This can be carried out two years from the end of the relevant accounting period where the costs were incurred.

To claim Land Remediation Relief, claimants must deduct the amount of any subsidy or grant received from any claim.

Ryan’s team of tax relief specialists, accountants, and industry experts can help landowners and developers to navigate the Land Remediation Relief scheme, identifying eligibility and creating the technical report for submission to HMRC.

If you would like to discuss your eligibility or enquire about how we can support your business, simply fill out the form below, and one of our experts will be in contact shortly.

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Ryan’s unrivalled expertise within innovation funding and tax relief empowers companies to fuel their business growth and fund their future. Our specialist team will evaluate your business’s eligibility for a diverse range of innovation funding services, including grants, research and development (R&D) tax relief, capital allowances, the Patent Box, and land remediation relief.