Land Remediation Relief
how much you can claim
Land Remediation Relief
Everything you need to know
Land Remediation Relief allows companies to claim tax relief of 150% on their corporation tax, for expenditure associated with the clean up of contaminated areas such as buildings and land.
Investors, developers, and commercial property owners are able to claim land remediation tax relief on expenditure that has been spent on the process of decontaminating land or buildings. This acquisition should be made from a third party.
Eligibility Criteria
To qualify for the relief, you will need to have spent money on the following activities:
- UK land
- Land that will be used for trading purposes of your business.
- The land acquired needs to fall under the category that the Government understands to be ‘causing harm’
What Is Qualifying Expenditure For Land Remediation Relief?
Your main qualifying expenditure falls under, but is not limited to:
- Sub-contractor costs
- Costs associated with employment as well as labour costs
- Capital expenditure, costs on machinery can be claimed through the incentive
- Costs associated with risk assessments, consultancy fees as well as liaison expenditure
What You Cannot Claim Through Land Remediation Relief
As with any tax relief, there are some limitations that will stop you from claiming.
You will not be able to claim back if:
- If your company was responsible for the contamination of land and/or building that you now want to remediate
- For example, if you are subsidised by grant funding for the decontamination process
- In addition, if the price for which you bought the land was discounted due to its contamination
How Much Tax Relief Can I Get?
Your company can claim up to 150% against Corporation Tax for your qualifying expenditure on acquisition of land and its remediation process. You can claim this relief by either:
- Surrendering your losses for a 16% tax credit
- Or, reducing Corporation Tax by 150% for your qualifying expenditure
COMPLEX TAX INVESTIGATIONS
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Churchill Tax provides all types of tax advice on complex issues to individuals and companies across all sectors. We make the time and effort to understand our client’s businesses and needs and our tax experts have a proactive and flexible approach to helping clients overcoming the challenges they face.
GOT A QUESTION?
If you are looking to action any of these tips in our guide or if have any other queries about tax and planning your finances for your future, our Private Client Tax team are here to help. Get in touch with a member of the team for an initial chat now.
How Does Churchill Tax Handle My Claim?
1. Getting To Know You
2. Evaluating Your Costs
We will request your financials to evaluate your costs and calculate your benefit
3. Writing Your Claim
We will write the claim for you which you can look over before submission to HMRC – you can be as involved in the process of writing your claim as you want to be.
4. Rewards
Receive your benefit in either a reduction in your Corporation Tax liability or a payable credit
WHAT WE OFFER
When appointing a Tax specialist to act on your behalf, it’s important to know that you’re in good hands. You need to know that the advisor you appoint has the experience, skills and courage required to achieve the best possible outcome for you.
Our role is as much about supporting our clients personally as it is about providing professional and effective Tax representation. This is why we have implemented facilities such as flexible payment options , that aim to make the process straight forward and stress free.
Have you received a notification of HMRC investigation?
BOOK A CONSULTATION
Churchill Tax provides all types of tax advice on complex issues to individuals and companies across all sectors. We make the time and effort to understand our client’s businesses and needs and our tax experts have a proactive and flexible approach to helping clients overcoming the challenges they face.