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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 announced that the government will launch a consultation in spring 2025 to review the effectiveness of Land Remediation Relief, assessing whether the relief continues to meet its objectives and provides good value for money." Anastasiya advises that developers and investors should act quickly and reach out as soon as possible to make use of the reliefs 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 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 and investors, especially those focused on land remediation, to review their expenditures now. LRR opportunities could shift, potentially scrapping this benefit for developers and investors who invest in new land acquisitions and developments. Investors and developers, should stay informed to navigate these changes.
Capital allowances are the main form of UK tax relief that allows businesses and property owners to deduct the cost of qualifying capital assets from their taxable profits. Governed by the Capital Allowances Act 2001, they take the place of commercial depreciation and provide a structured mechanism for obtaining relief on capital expenditure, either upfront or over time.
Capital allowances on cars allow UK businesses to claim tax relief on the cost of vehicles used for business purposes. This guide is written by RCK Partners to help UK businesses understand capital allowance claims on vehicles.
From April 2027, R&D tax credits will be excluded from QIP calculations, reducing the likelihood that companies are required to pay corporation tax early.
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