Land Remediation Relief
Getting paid to clean up contaminated land!
What is Land Remediation Relief
Land remediation relief is a tax credit for property developers or those with a vested interest in property ro land that clean up the contaminants present. The credit can help improve cash flow and improve profitability, so it’s worth exploring whether you could be eligible. If you, or your clients, have developed brownfield sites, or have refurbished commercial property assets, then please make sure you talk to us about whether you might qualify.
One of the most generous tax reliefs available to property developers and investors: 150% of the money spent on qualifying remediation of brownfield sites and buildings can be used for an extra tax deduction and is claimed in a company’s corporation tax return.
What contaminants Qualify?
Asbestos
Cleaning asbestos is one of the most common forms of qualifying land remediation works.
Asbestos was used almost exclusively until the 1980’s, and so is still prevalent in a large portion of UK buildings.
Breaking-out Below Ground Structures
Below ground services, plant bases, basements and plant rooms are very common in commercial property throughout the UK.
Removing those structures to make way for something better is an often overlooked qualifying expenditure.
Japanese Knotweed
The bane of property owners everywhere. Japanese knotweed is a highly aggressive weed that is so nasty it is now considered a contaminant.
Dealing with it is highly expensive, as the protocols for removal are very specific, but the good news is now an allowable expense for land remediation relief!
Arsenic or Radon
Naturally occurring, arsenic and radon often become expensive extras when dealing with land and property development.
Barrier systems can be included in remediation costs!
Do I Qualify?
As with all tax credits, certain criteria must be met. If you’re uncertain about whether you might qualify, please do not hesitate to talk to us. However, here are the general guidelines for qualification:
- Is the land in the UK?
- Are you subject to corporation tax?
- Have you acquired an interest in the land which is greater than a 7-year leasehold?
- Are you in no way the causation of the pollutant or connected to the polluter?
Book a meeting
As tax consultants, we will help you to make sure that you meet the criteria and help in what projects/developments are eligible, and explore with you what can be claimed. Due to the way that this tax credit can be used for prior projects and current developments, what exactly can be claimed, and how much, is not straightforward, and by using us you could be making significant savings.
