Land Remediation Relief is a corporation tax incentive in the UK that is designed to encourage the cleanup and redevelopment of contaminated or derelict land. It allows companies to claim a special tax relief when they have costs to remediate land that has been affected by pollution or other harmful substances. This remediation relief could be helpful to property developers, investors, and businesses bringing previously used land back into productive use.
What Is Land Remediation Relief?
Land Remediation Relief gives an additional tax deduction of 50% on qualifying remediation costs, meaning that companies can deduct up to 150% of their eligible expenditure from their taxable profits. In certain circumstances, loss-making companies may also be able to surrender the relief for a payable tax credit. The relief only applies when contamination existed at the time the land was acquired and was not caused by the claimant.
What Costs Can Qualify for Land Remediation?
Expenses that qualify generally include costs directly associated with removing or neutralising this contamination. This can cover treating any contaminated groundwater, removing asbestos, dealing with heavy metals, or getting rid of invasive species. Professional fees, site investigations, and preparatory works that are linked to soil remediation, such as https://soilfix.co.uk/services/soil-remediation/, may also qualify, provided they are necessary to make the land safe again.
Can Land Remediation Be Claimed Retrospectively?
Yes, Land Remediation Relief can be claimed retrospectively. Companies can usually amend corporation tax returns for accounting periods going back up to two years and can then recover tax on qualifying remediation works already completed.
