Land remediation relief... are you missing out?

15 November 2021

Land remediation relief (LRR) is a generous tax incentive intended to promote the remediation and development of blighted land and buildings and covers expenditure on specific activities.

It’s available to property owners, investors and developers, so it’s important to understand if you or your clients involved in this could be missing out! For specialised business services such as Geotechnical Engineers, identifying opportunities to benefit from this underutilised tax relief can add significant value to their client offering.

What’s Land Remediation Relief?

 Land Remediation Relief (LRR) is a valuable tax relief which is claimable by any company subject to corporation tax. The relief’s available to property owners, investors and developers, at the following rates on qualifying expenditure:

  • Owner occupier or investor rate – 150% (uplifted value)
  • Developer rate – 50%
  • For loss making companies, the relief comes in the form of a tax credit – 16%

The time limit for retrospective claims is up to a maximum of expenditure incurred on LRR qualifying activities in the past 3 years.

What Qualifies for LRR?

Land Remediation Relief qualifying activities can include some of the following:

  • Removal of asbestos from buildings.
  • Breaking-out buried structures and old foundations.
  • Treatment of Japanese Knotweed.
  • Treatment of naturally occurring contaminants including radon and arsenic.

Claims can be made on developments, regeneration projects, fit-outs, refurbishments and any other related project. Whilst generally focussed at businesses in the construction sector, it could just as easily apply to any business that has carried out any of these activities on a one-off basis on their office or warehouse for example over the past few years.

This specific relief’s a really valuable way to get cash back into either yours or your client’s business and is a great way for property consultants and specialists to add value to their service offering by identifying and recommending the relief to clients.

Land Remediation Relief was originally introduced to encourage landowners and developers to restore land resources, which had previously been contaminated, to their former state.

Currently, many developers are missing out on the benefits of the scheme because they’re unaware that the work they’re doing to ‘clean up’ land could qualify for this valuable incentive.

Fortus’ experienced LRR team can assist with the identification of this relief and deal with the entire LRR claim process from technical and financial discovery through to the submission of a claim.

Want to know more of check if a project you’ve worked on qualifies? Then contact Tom Dymond today on 01604 273782, or email the team.