Land Remediation Tax Relief has been around for over a decade, but many businesses still fail to claim it. The scheme was designed to incentivise the development on existing commercial ‘brownfield’ land, rather than using greenfield sites. 150% of the cost of cleaning up a site can be claimed against corporation tax.
One of the reasons businesses fail to claim is the perception that it relates only to ‘land’. In fact, it applies to buildings too.
To be eligible the site must be owned by a limited company as a freehold, or a lease with at least 7 years left to run, at the time the remedial work is carried out.
The definition of ‘remediation’ is quite broad and includes scoping and analytical costs, staff and sub-contractor costs, treatment costs and things required to restore the site to ‘good health’. It is possible to make claims up to two years after the work is completed.
In order to qualify for relief, the site must be proved to be ‘contaminated’ – that means it must offer the prospect of ‘serious harm’ to people or the environment. This may include bio-contaminants like ‘Japanese Knotweed’ and ‘arsenic’ contamination. The list also includes:
A significant amount of tax relief is available in the area of remediation and therefore HMRC tend to examine claims to ensure they are properly presented. Our expert tax team can ensure your claim bears up to the closest scrutiny.
Our experienced team can quickly assess whether your business can benefit from the above tax relief schemes. Get in contact today.
