This tax relief has been around for the best part of twenty years, yet Land Remediation Relief for landowners (investors) and property developers may be something you may not be aware of.
This tax credit can range up to 28.5p in every qualifying pound spent on such clearance or decontamination in the previous two financial years.
What is Land Remediation Relief for Landowners?
Land Remediation Relief was introduced in 2001, with a revision around 2009. This enables businesses to claim corporation tax relief on costs incurred for decontaminating or clearing land, or derelict structures, that will restore it to a productive state.
Needless to say, this potentially could be a sizable sum and is available as cash back or a deduction from tax liability.
Qualifying Contamination Conditions for Land Remediation Relief for Landowners
The subject UK site must be owned by the claimant with contamination that is either:
- The result of previous industrial activity, for example manufacturing, mining, service supply, etc
- A site infected with Japanese Knotweed either before or after acquisition
- The presence of radon or arsenic
Qualifying Contamination Expenditure
Claimants may apply for tax credit on employee, subcontractor and material costs for:
- Establishing the level of contamination, for example surveying costs
- Removal of contaminates such as asbestos or the treatment of harmful organisms
- Containing contaminates to remove the possibility of relevant harm, for example with structural investment
Land Remediation Relief for landowners enables businesses to claim corporation tax relief on costs incurred for decontaminating or clearing land, or derelict structures
Qualifying Derelict Land Conditions
These are the costs incurred bringing back derelict land into productive use.
The land has to be:
- In the UK and owned by the claimant
- Long term derelict since the purchase or 1st April 1988, whichever is the earliest
- Not in a productive state and the only way to make it productive would be to remove buildings or structures
Claimants may apply for tax credit on employees, subcontractors and material costs for, establishing which of the below redundant structures are present and the cost of removing them.
- Post tensioned concrete heavyweight construction
- Building foundations and machinery bases
- Reinforced concrete pilecaps
- Reinforced concrete basements
- Below ground redundant services (exclusively gas, water, drainage, sewerage, electricity and telecommunications)
How to Claim for Land Remediation Relief for Landowners
Developer Money Market is an independent specialist in property development funding. If you have any questions regarding Land Remediation Relief for landowners and property developers, then please do not hesitate to contact us. We can help you get a quick assessment of potential qualification for Land Remediation Relief and the claim process can be as fast as 6 weeks.