Land Remediation Relief (LRR) can provide tax relief in all commercial property sectors where companies are subject to corporation tax. Unlike capital allowances, LRR is available to property investors and developers alike.
What is LRR?
LRR is a tax incentive that is intended to promote the remediation and development of blighted land and buildings, covering expenditure on specific activities.
The relief’s available to property owners, investors and developers, at the following rates on qualifying expenditure:
- Owner occupier or investor rate – 150% (uplifted value)
- Developer rate – 50%
- For loss making companies, the relief comes in the form of a tax credit – 16%
The time limit for retrospective claims is up to a maximum of expenditure incurred on LRR qualifying activities in the past three years.
What counts as land contamination for LRR?
According to HMRC and for the purposes of claiming LRR, land or buildings are considered contaminated if there is contamination present as a result of industrial activity such that:
- it is causing relevant harm;
- there is a serious possibility that it could cause relevant harm, or
- it is causing, or there is a serious possibility that it could cause, significant pollution in the groundwater, streams, rivers or coastal waters.
Whilst generally targeted at businesses in the construction sector who have carried out regeneration, refurbishment or fit-out projects, it could also apply to any business that has undertaken any of these activities on a one-off basis on their office or warehouse for example over the past few years.
Get in touch
Contact our experienced tax team to find out more about accessing Land Remediation Relief and making a claim. Call 01788 539000 or 0116 261 0061, or email [email protected].
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