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We caught up with Capital Allowances Partner, Anastasiya Kokonova, to discuss Capital Allowances and Land Remediation Relief (LRR), post budget.
"As businesses and developers seek routes of funding, the LRR scheme remains an essential opportunity, although as indicated by the recent Budget, its future is uncertain. This Budget prefaced the potential discontinuation of the scheme, following a review to assess its impact." Anastasiya advises that developers should act quickly and reach out as soon as possible to make use of the relief's whilst they are available and warned that now is the time to review associated expenditure.
Anastasiya adds, "Developers are generally investing a lot of money and they are usually loss making. The scheme was brought it to encourage businesses to invest in brownfield land. The good news is that developers and investors can surrender this to gain tax credit and, from my experience, claiming can be very profitable." By reviewing existing reports and data clients have already gathered, RCK Partners can use our experience with the technical narrative and claim submission.
Turning to other incentives, “Full Expensing” as part of the Capital Allowances scheme, will not change. Anastasiya comments, "the annual investment allowance will likely remain stable, with efforts to simplify and clarify the rules - a welcome development in the often complex world of tax. Tax isn’t black and white, so greater clarity will help clients understand what these incentives can offer them.”
As tax regulations continue to evolve, Anastasiya reminds clients that RCK Partners is available to support them through these changes. Anastasiya again, encourages developers, especially those focused on land remediation, to review their expenditures now. LRR opportunities could shift, potentially scrapping this benefit for developers who invest in new land acquisitions and developments. Investors, while less directly impacted, should stay informed to navigate the scheme changes.
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