Is your business missing out on Land Remediation Tax Relief?

Contaminated and derelict areas are often given a wide berth when businesses are looking to acquire a new space. This is hardly surprising when you consider the amount of time and resources that are needed to put the land to good use. However, Land Remediation Relief is an invaluable incentive for those who are spending money restoring a contaminated or derelict space.

What is Land Remediation Relief?

If your business has acquired a contaminated or derelict building/land, and you have since incurred expenses on clearing the space, or putting measures in place to minimise the impact of the contamination, Land Remediation Relief can open new doors when it comes to your cashflow. All qualifying land remediation costs can be fully deducted from your trade profits, as well as an additional 50% - significantly lowering your corporation tax liability. If your company is loss making, you can make a claim to surrender that loss for a land remediation tax credit.

What classifies as contamination?

In short, the removal of any contaminant or substance which has the potential to cause harm is likely to qualify for relief. Whether it’s asbestos, arsenic, chemical spillages or Japanese knotweed, the list is huge.

Qualifying costs

Costs aren’t just limited to the actual remediation process itself, but stretch to indirect activities such as staffing, materials needed to remove the contamination, and any subcontracted work in relation to the restoration. Recently, one of our clients acquired a number of buildings with the intention of turning them into residential properties. However, the majority of these buildings were contaminated with asbestos, requiring full remediation works to ensure that the buildings would be safe to live in. The client was under the impression that they could only claim on the costs of removing the asbestos, but we helped them to identify further qualifying costs such as surveying, access and safety costs, meaning that their claim amounted to over £900K.

Land Remediation Relief at Haines Watts

Even though businesses can handle Land Remediation claims themselves, we’d always recommend consulting an advisor to ensure you get the most out of your claim. Our tax incentives and reliefs team can help to maximise the value of your claim and are here to support you every step of the way. Get in touch today to see how we can help you with your claim.