Land Remediation Relief

This incentive offers enhanced tax relief to UK companies who incur expenditure in remediating contamination on land or in buildings, or when dealing with derelict buildings.

The types of relief generally available are:

Owner, occupier or investor rate
150%
Developer Rate
50%
Loss making UK companies
16% Cash Credit

What contaminants are covered?

Land is contaminated for LRR purposes if there is something which could cause harm to living organisms, pollute controlled waters, impact on ecosystems or cause structural damage to buildings including; asbestos, lead/copper/zinc/heavy metals, sulphurous materials/hydrocarbons, Japanese knotweed, radon and arsenic.

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24 hour response time
Proven track record of results
Compliance at the heart of every claim
Women dressed in protective gear inspecting water from a river

Conditions for relief

Expenditure would not have been incurred if the land had not been in a contaminated state
Expenditure is not subsidised (e.g. grant funding)
The pollution was not created or exacerbated by anything done or not done by the claimant
The expenditure is not eligible for any form of tax relief via Capital Allowances
A ‘major’ interest in land is held (freehold or a minimum lease of 7 years)

Claiming Process

The below process is flexible and can be adapted based on a client's preferences as to their involvement within the process.

Step 1: Scoping Call

Step 2: Entitlement Check

Step 3: Review Property Documentation

Step 4: Financial Analysis

Step 5: Site Survey

Step 6: Submission to HMRC

Case Study

RCK Partners identified an additional £1m of qualifying LRR expenditure for a national house builder

£2m x 100%
=
£2m revenue deduction
£2m x 50%
=
£1m enhanced tax relief  
£750k total savings

£250k enhanced tax savings

The £3m worth of total tax relief provided our client with a tax saving of £750k (based on a corporation tax rate of 25%).

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