Land Remediation Relief
Land Remediation Relief is a tax incentive to encourage businesses to clean up and redevelop contaminated land or derelict properties.
By claiming this relief, housebuilders, property investors and developers can receive significant tax deductions on their expenditure related to environmental clean-up and site preparation. This not only alleviates some of the financial costs associated with remediation but also supports the broader goal of improving land quality and promoting sustainable development.
Eligible activities include removing or treating hazardous substances, as well as making improvements to the land that contribute to its safe and productive use. By taking advantage of Land Remediation Relief, companies can reduce their tax liabilities while contributing to environmental protection and community revitalisation.
Land and buildings are considered 'contaminated' if industrial activities have introduced pollutants that could cause 'relevant harm.' Tax relief is available for various decontamination efforts on both land and structures. This includes removing contaminated soil and water, treating harmful organisms, addressing natural contaminants like radon and arsenic, dismantling buried structures, and managing invasive plants such as Japanese Knotweed.
Relief also covers the removal of asbestos from buildings, post-tensioned concrete, building and machinery foundations, redundant below-ground services, and reinforced concrete basements.
Derelict land describes properties or areas that have fallen into disrepair or neglect, often due to abandonment or previous industrial use. This land may be characterised by physical deterioration, environmental degradation, and a lack of maintenance, making it unsuitable for development or productive use until it undergoes significant remediation and redevelopment efforts.
What is Contaminated or Derelict land?
Qualifying Contamination includes:
Radon
A naturally occurring radioactive gas that can accumulate in buildings.
Arsenic
A toxic element that can be found in soil or groundwater.
Heavy Metals
Including cadmium, chromium, and nickel, often from industrial activities.
Volatile Organic
Compounds (VOCs):
Harmful gases emitted from certain liquids or solids.
Petroleum
Products
Spills or leaks of oil, gasoline, diesel, and other petroleum-based substances.
Asbestos
Dangerous fibers found in older building materials.
Polycyclic Aromatic Hydrocarbons (PAHs)
A group of harmful compounds resulting from incomplete combustion of organic material.
Invasive Plants
Such as Japanese Knotweed, which can damage structures and ecosystems.
Harmful
Microorganisms
Pathogens or contaminants affecting soil and water quality.
Japanese knotweed
Garden plant that is difficult to eradicate and invasive.
Hazardous
Chemicals
Industrial chemicals, solvents, and heavy metals like lead and mercury.
Pesticides and Herbicides
Residual agricultural chemicals that can be harmful.
To be eligible, the land or building must be owned by a limited company either as a freehold or leasehold with at least a 7 year term. The land or building must pose a possible threat of “serious harm” to people and the environment or damage to buildings.
Even if you have completed the project, you may still be able to claim! Land Remediation Relief allows you to claim for work done up to 3 years ago.
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Are you
Eligible?
Staff Costs
Any staff who were directly and actively engaged in remediation relief including salaries, employer NI costs, employer pension costs and reimbursements.
Materials
Any materials that have been used directly in the remediation work are claimable.
Subcontractor
Costs to third-parties to assist or perform remediation work are claimable.
Professional Fees
Costs including consultancy fees, risk assessments, lab costs, regulatory costs and preparatory activities.