Land Remediation Relief: What is it and am I eligible?

Investing time and money in contaminated land/property can be enormously off-putting, when considering acquiring a new space for your business. Land Remediation Tax Relief (LRR) was introduced to offer a solution to this problem, and encourage businesses to put contaminated land back into use, rather than building on the greenbelt.

What is LRR?

LRR allows business to claim a huge corporation tax relief on 150% of costs which are spent on cleaning up land that has been contaminated by the likes of asbestos, arsenic and other harmful substances.

Qualifying Costs

Costs qualify for relief if they're a direct result of remediating the contaminated land, and would not have arisen otherwise. The list of qualifying costs is plentiful, including:

• Any preliminary work to establish the level and work required for remediation
• The process of removing/cleaning-up harmful substances
• Materials required to remove the contamination
• Staffing
• Sub-contracted work in relation to the remediation
• The provision of a capping layer to provide a barrier

When can I claim?

If your land is based in the UK and meets all of the following criteria, it's more than likely that you will be able to claim LRR:

• Land was acquired for trade/business and;
• Was contaminated at the time of acquisition;
• Is causing, or has the potential to cause harm;
• Is freehold, or has a minimum lease of 7 years

When can't I claim?

It's worth keeping in mind that there are specific instances where you won't be able to claim relief. For example, if you have caused the contamination or have already received a grant for remediation costs. Also, if your company was served with a statutory notice to carry out the work, you won't be eligible.

How can we help with LRR?

If you think you might qualify for LRR, or want to know more about claiming, get in touch with our team. We can assess your eligibility and take the time-consuming process off your hands.