Land Remediation Relief (LRR)

What is Land Remediation Relief and how does it work?

Land Remediation Relief is a form of relief from Corporation Tax available to businesses who acquire contaminated or derelict land and spend money to clean-up that land.

How will the Land Remediation Relief benefit me?

The relief provides a deduction of 150% for qualifying expenditure incurred by companies in cleaning up land acquired from a third party in a contaminated state. This claim can be made within your Corporate Tax return within two years of the end of the accounting period for which the qualifying expenditure was identified. 

It can either reduce your Corporation Tax liability or generate a cash credit. 

Is my business eligible for the relief?

The relief is available to any limited company who purchases derelict or contaminated land and restores that land or contains the contamination. You can claim for any revenue or capital expenditure, such as staff costs or the costs of materials, incurred in restoring land from a contaminated or derelict state, provided you or any connected party were not responsible for the contamination.

Examples of what you can submit a claim for are as follows:

• Removal of asbestos
• Removal of Japanese Knotweed
• Bioremediation of land contaminated with oil

There are many other eligible land remediation claims, if you think you qualify for the relief it is best to seek expert advice.

How can Ad Valorem help?

Ad Valorem have extensive expertise in land remediation relief and have the in-house knowledge of all the conditions for claiming and the eligible costs that you can claim.

We can guide you through the process to ensure we capture all information and expenditure and to make sure HMRC get a fair representation of your claim.

Our expertise in these claims and the rules that surround them ensure a compliant claim, therefore minimising the risk of enquiry/claim rejection.

Our streamlined process will save you time and take the pressure off you to submit to HMRC.

Our fees are success based which means that you won’t pay anything unless you receive a benefit from the claim.

What costs are allowable?

Examples of the costs which can be included in your claim are:

• The cost of removing or containing the contamination.
• A proportion of the staffing costs incurred when restoring the land.
• Costs incurred on the materials needed to restore the land.

When is the best time to start a claim?

The best time to start is now! When claiming LRR you are eligible to claim for up to two previous accounting periods and so there is a rolling two-year deadline for submission.

Get in touch using the details below to find out how we can help.

Call us on 01908 219100 or drop us an email on enquiries@advaloremgroup.uk.