Land Remediation Tax Relief
Our service optimises your Land Remediation Tax Relief claim, reducing the likelihood of an enquiry and saving you valuable time, money, and unnecessary stress.
Trusted and compliant specialists
We have established a reputation for excellence and integrity in the Land Remediation Tax Relief sector. Our clients trust us to handle their claims efficiently, compliantly and ethically, providing them with peace of mind throughout the process.
Managed by experts
Our experienced team of Land Remediation Tax Relief specialists provides expert guidance to navigate the complexities of the LRR tax process. We ensure that you understand the eligibility criteria and maximise your claim potential.
Maximise your tax claim
We help our clients to identify all qualifying activities and expenditures, with an aim to maximise their Land Remediation Tax Relief potential. Our main goal is to ensure you receive the maximum benefits you are entitled to, compliantly.
Number of clients we have helped to successfully claim (k)
Amount RDI has successfully claimed for our clients (£m)
Percentage of clients that use RDI for the next financial year (%)
The trusted experts you need to manage your Land Remediation Tax Relief claim
At RDI Solutions, we have a proven track record of assisting over 3,000 businesses in successfully claiming over £200 million in government-funded tax incentives through various tax relief schemes. As a trusted tax incentive specialist, we specialise in helping qualifying businesses of all shapes and sizes, across diverse sectors, navigate the complexities of claiming Land Remediation Tax Relief.
Land Remediation Tax Relief Explained
Land Remediation Tax Relief can help to provide vital funding or tax reductions to businesses of all shapes and sizes. Every business, in every industry is eligible, however, the company must have capital expenditure in key qualifying areas and the land purchased must be for commercial use and situated on contaminated or derelict land.
Provided that the business is a limited company, owns the land, and meets certain criteria within HMRC's guidelines then it is possible to receive relief on a whole manner of works including development, regeneration, fit-out, and refurbishment initiatives.
Should a business meet the qualifying criteria, it can give a tax deduction of up to one and a half times the money spent on cleaning up the land in question. If a Land Remediation tax claim is successful, the business will either get a direct cash payment from HMRC, or a reduction in its Corporation Tax bill, depending on whether the business is profit-making or loss-making.
"There are some amazing reliefs available for property developers and businesses alike which many are still unaware of. Introduced in 2001, LRTR provides a unique tax benefit and is growing strength on strength."
Senior Tax Incentive Consultant
What is Land Remediation Tax Relief?
Land Remediation Tax Relief is a UK government tax incentive scheme established to incentivise the use of developing on brownfield sites rather than developing on the greenbelt.
What are the key benefits of using our LRR tax service?
Over 5,000 successful tax relief claims
£200m+ rewarded back to our clients
Time-saving claim specialist claim service
130+ in-house tax experts
Free HMRC enquiry defence as standard
Award-winning customer support
Insufficient specialist experience
Liable to overlook qualifying costs
Basic technical expertise
No enquiry defence as standard
Liable to introduce non-qualifying costs
Basic technical experience
Burden on your business to fulfil the data
Lack of experience in defending HMRC enquiries
Our relationship with HMRC
With extensive experience collaborating with HMRC, the RDI Solutions team actively contributes to the development of best practice guidelines.
On a daily basis, we encourage and handle routine tax relief claim matters, whilst cooperating with HMRC's compliance team to address any potential enquiries.
Our strong working relationship and comprehension of the challenging and ever-changing world of tax relief enable us to engage in meaningful discussions and to effectively resolve our client's claims and enquiries in the most professional and compliant manner.
A guide to Land Remediation Tax Relief
Your Land Remediation Relief questions answered
Land Remediation Relief provides significant tax savings for property developers, housebuilders, investors, and landowners engaged in land remediation projects. It covers costs related to the removal of contaminants, site preparation, and associated works. By encouraging the revitalisation of either contaminated or derelict land, Land Remediation Relief not only offers financial advantages but also fosters responsible environmental practices and contributes to community regeneration.
To benefit from Land Remediation Relief, the land must be contaminated or derelict at the project's start, and the remediation work should directly contribute to its development.
Understanding the eligibility criteria and guidelines is essential to ensure compliance and to maximise the tax reduction to the business.
Seeking professional advice from a tax specialist such as RDI Solutions, or consulting with HMRC can provide valuable insights and support in navigating the complexities of Land Remediation Relief, ultimately unlocking its potential benefits for businesses and the environment.
Did you know?
LRR covers both revenue and capital expenditures associated with land remediation activities, providing potential tax relief for ongoing operational costs as well as long-term investments.
A brief history to Land Remediation Relief
The UK Government first introduced Land Remediation Relief in 2001 and since then the scheme has undergone several revisions in order to enhance its effectiveness and broaden its scope. Over the years, the government recognised the importance of incentivising land remediation and made continued adjustments to ensure the relief aligns with evolving environmental and economic priorities.
As LRR continues to evolve, it remains an essential tool in supporting the restoration and redevelopment of land with environmental challenges whilst also providing a potentially significant boost in terms of funding back to the business involved in the remediation process.
Is your business eligible for Land Remediation Relief?
In order to access deductions and tax advantages through Land Remediation Relief, your business must meet the following eligibility criteria:
In a nutshell, to benefit from Land Remediation Relief, the following criteria must be met:
Be subject to Corporation Tax. Individuals and partnerships such as LLPs are not eligible. With the exception of partnership companies, businesses can claim relief for their portion of land remediation expenditure if they meet the necessary requirements.
The land must be located in the UK and purchased by the company for its trade or own business purposes. At the time of purchase, the land must have been in a contaminated state. Additionally, the company must either own the land or have a significant interest in the land (freehold or a minimum lease of 7-years).
The land must meet the definition of contamination as specified below. Furthermore, the expenditure can only be considered for an additional deduction if it can be demonstrated that the cost would not have been incurred had the land not been contaminated.
The cost of the land should not be discounted solely due to its contamination. If the property is purchased at a reduced price specifically because of the contamination, any subsequent expenditure on land remediation will be excluded from qualifying for LRR.
What costs qualify for Land Remediation Relief?
While you might be carrying out activities that qualify for Land Remediation Relief, it's important that you know which costs can actually be claimed for.
Recognising and identifying Land Remediation costs can be difficult, but usually, the main ones are:
Salaries, wages, and employer's National Insurance Contributions (NIC) of employees involved in the cleanup process may be eligible. It is important to document and substantiate these costs, ensuring they are directly associated with the qualifying remediation activities.
Expenditures incurred for conducting environmental assessments, site surveys, soil testing, or other investigations necessary to identify and understand the extent of contamination.
Fees paid to architects, engineers, environmental consultants, or other specialists directly engaged in the remediation project.
Please note, there are many more types of Land Remediation costs that you can potentially claim for.
Simply get in touch on 0330 133 1856 and one of our helpful and knowledgeable consultants will be able to assist with your questions.
Site Investigation and Survey Costs
Land Remediation Relief works by offering cash credits and corporation tax reductions to eligible companies performing LRR activities.
Which activities and works qualify for Land Remediation Tax Relief?
Remediation of Contaminated Sites
Japanese Knotweed Management
Removal of Building Foundations and Machinery Bases
Removal of Reinforced Concrete Basements, Post-Tensioned Concrete, Reinforced Concrete Pile-Caps
Mitigating Sulphate Contamination in Concrete and Soil
Radon and Arsenic Protection Measures
Redundant services which are located below the ground (services being pipes, wiring, tunnels, etc. used in relation to the gas supply, the water supply, drainage or sewerage, the electricity supply or telecommunications)
Plus many more (to learn more simply get in touch with one of our consultants who will be on hand to assist with any further questions you may have)
How much is a Land Remediation Relief claim worth & how is it paid?
Land Remediation Relief and the value of the amount you can successfully claim back is determined by evaluating your Land Remediation expenditures (the qualifying key areas as mentioned above).
To calculate your Land Remediation Relief, you must identify eligible expenses and multiply them by the applicable rate (refer to the details below). This process yields your 'enhanced expenditure'.
By subtracting your enhanced expenditure from your taxable profits or incorporating it into your losses, you will achieve one of the following outcomes:
A reduction in Corporation Tax if your business is profit-making.
A cash credit if your business is loss-making.
The Land Remediation Tax Relief rates are as follows:
Owner-occupiers / Investors = 150% (Corporation Tax Deduction)
Developers = 50% (Corporation Tax Deduction)
Loss Making Companies = 24% (Cash Credit)
Owner-occupiers / Investors
Types of Land Remediation Tax Relief
150% Corporation Tax Deduction
50% Corporation Tax Deduction
What is the time limit to claiming Land Remediation Relief?
The time limit for claiming Land Remediation Relief is generally within two years after the end of the accounting period in which the qualifying land remediation expenditure was incurred.
This means that the claim must be made within two years from the end of the relevant accounting period.
It is crucial to submit the Land Remediation claim within this time frame to ensure eligibility for the relief. Missing the deadline may result in the loss of the opportunity to claim LRR for the specific expenditure incurred. Therefore, it is advisable to proactively monitor and adhere to the two-year time limit when seeking to claim Land Remediation Relief.
How long does it take to receive funds from HMRC?
HMRC has a Service Level Agreement (SLA) of 28 days for processing Land Remediation claims, ensuring a timely payout to eligible businesses.
On average, it takes approximately 4-weeks to receive funds from HMRC.
Work with trusted experts
Discover how we can help your business to claim Land Remediation Tax Relief in the right way today.
Understanding the complexities of bringing forward robust and compliant Land Remediation Relief claims can be extremely challenging if you are not an expert.
With the landscape across the market ever-changing, now, more than ever, it's important to work with trusted and reputable tax specialists that are able to talk your language and get on with the task at hand.
At RDI Solutions, our in-house team of 130+ tax relief specialists is made up of ex-HMRC inspectors, sector experts, and chartered accountants. Our reach spans 4 office locations nationwide and to date we have helped over 3,000 businesses claim back over £200m in tax relief.
To find out more about how we could possibly help you and your clients, simply visit our Accountancy Partnership Scheme page to see how you and your clients might benefit from our services.