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.

150%

Owner occupier or investor rate

50%

Developer rate

16%

Loss making UK companies (as a cash credit)

What contaminants are covered?

Land is contaminated for land remediaiton relief 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

  • Arsenic

Conditions for the 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). The definition of a 'major interest in land' is intended to mean that the effect is the same irrespective of where in the United Kingdom the land is situated.

Process is protection

Land Remediation Relief claim process
A bespoke process for our clients individual needs.
  • 01.

    Scoping call 

    Between the client and a consultant to discuss the project for land remediation relief

  • 02.

    Entitlement check

    Confirm entitlement to land remediation relief by reviewing relevant legal documentation including land agreements and construction schedules to confirm that the entity incurring the expenditure satisfies the entitlement criteria for land remediation relief purposes

  • 03.

    Review property documentation

    Review Property Documentation - Review relevant specifications, remediation strategy reports, post-remediation reports, site investigation report,  liaise with project team members to clarify contract and variation costs, construction details and obtain further cost information

  • 04.

    Detailed financial analysis

    Carry out a detailed analysis of all information gathered to categorise individual items according to the most favourable tax treatment where we are satisfied that there is a filing position for that treatment

  • 05.

    Site Survey

    Undertake a detailed land remediation relief survey of each project as the works progress, including taking written and photographic records that will assist us with any negotiations with HMRC for the tax treatment adopted for particular items

  • 06.

    Submission to HMRC

    Compile and issue full and detailed land remediation report. Provisional claims to be submitted if so required.

Case study

RCK Partners identified an additional £1m of qualifying land remediation relief 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%).

Get in touch

We would be happy to help you, please get in touch with any queries by using our contact form. We’ll get back to you within 24 hours.

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