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The true value of Land Remediation Relief
30 March 2022
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 intended to promote the remediation and development of contaminated or long-term derelict land and buildings and covers expenditure on specific activities. It’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 on expenditure incurred on LRR qualifying activities is three years.
SO, WHAT QUALIFIES EXACTLY?
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.
TOP FIVE REASONS TO CLAIM LRR
- To generate the maximum corporation tax relief or credit available to your business.
- To secure a valuable saving for your business, which could then be used for future investment.
- To reveal any qualifying expenditure you weren’t aware you could claim for.
- To identify any tax relief that you may not have claimed in the past three years.
- To benefit your business for any future projects
Here are a few examples of clients we’ve supported in claiming LRR.
Owner Occupier Client – National Plastic Packaging Supplier
This involved the removal of a large asbestos roof at the client’s HQ building. The client had no prior knowledge of LRR and so we were able to secure the client tax relief that they otherwise would have missed.
- Removal of Asbestos Roof
- Investigation of all Associated Costs
- Tax Benefit of £15,750
Developer Client – Residential Developer
We worked with a well-established regional house builder to identify several projects they’d developed over the past couple of years, to claim LRR retrospectively and secure the client a substantial benefit.
- Breaking out old foundations and buried structures
- Radon & Arsenic Ground Treatments and Mitigation
- Investigation of All Associated Costs
- Tax Benefit of £32,500
LRR is a really valuable way to get cash back into 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. Here at Fortus Business Advisors & Accountants, we’ve an experienced and dedicated Property Services team that can help unlock the benefits that businesses may be entitled to.
Want to know more or check if a project you’ve worked on qualifies? Contact Fortus’ LRR Team today on 01604 746760.