Land Remediation Tax Relief
Land Remediation is a tax relief available to property investors who are undertaking remediation of contaminated land.
What is it?
Land Remediation Tax Relief is a form of tax relief that helps compensate companies for the costs involved in cleaning up land or buildings for commercial use. This includes the removal of contaminants (both artificial and natural), the removal of asbestos, radon gas and the removal and treatment of impediments, such as existing foundations, services or other underground infrastructure.
To qualify for Land Remediation Tax Relief, your company must have incurred costs on cleaning up land or buildings considered to be in a contaminated state. The scope of costs allowed is generous and competitive.
You must be registered as a limited company in the UK and be the owner of the land or building at the time of the remediation work. In addition, the land or building must be owned either as a freehold or leasehold with at least a seven-year term.
Common examples of qualifying contamination and remedial measures include:
- Sulphate contamination in soil and concrete;
- Hydrocarbon contamination;
- Pollution from previous industrial activity;
- Ground/landfill gases;
- Japanese Knotweed;
- Removal of redundant utility services and concrete foundations.
Qualifying costs can include surveys, excavations, soil/groundwater treatments, staff costs, required materials and subcontractor costs. Claims can be made for categories of derelict land. This can be advised with relevance to time periods when land could be considered for dereliction.
What’s the benefit?
You could be eligible to claim relief up to 150% of your company’s land or property clearance costs. This would be returned to you in the form of Corporation Tax Relief, or as a payable tax credit in loss-making situations.
How do I find out if it’s applicable to me?
Regardless of the industry you operate within, if you’ve acquired land or buildings in a contaminated or derelict state for intended commercial use, you could claim.
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