Land Remediation Relief

Our tax specialists have helped more than 25 companies claims over £19m in LRR tax relief.

Home Land Remediation Relief

What is land remediation relief?

Land remediation relief (LRR) is a tax relief scheme that enables businesses to claim corporation tax relief of up to 150% of the cost of remediating – or cleaning up – contaminated land or buildings.

It was introduced to encourage commercial property owners, investors and developers to bring more ‘brownfield’ sites back into use by restoring land or buildings that had previously been contaminated, back to their former state.

But many landowners and developers miss out on the benefits of LRR as they don’t realise their project could be eligible. That’s where DAAFL can help.

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A construction company able to apply for land remediation tax relief
A company able to take advance of LRR

How does LRR work?

LRR can provide tax relief in all commercial property sectors where companies are subject to corporation tax.

There are three rates of relief:

  • Owner occupier / investors - 150%
  • Developers - 50%
  • Loss making companies - 24% tax credit (cash back)

Relief can be claimed on developments, regeneration projects, fit-outs and refurbishments, with a time-limit of three years for retrospective claims.

What is contamination?

Land and buildings are classed as ‘contaminated’ if, due to previous industrial activity, there is contamination present which could cause harm.

This includes the removal of contaminated soil and water, the treatment of harmful organisms, the removal of natural contaminants (for example, radon and arsenic), the removal of buried structures, and the removal and treatment of invasive plants (such as Japanese Knotweed).

LRR tax relief is available for a wide range of decontamination measures on both land and buildings.

Relief is also available for the removal of asbestos from buildings, post-tensioned concrete, building and machinery foundations, below ground redundant services, and reinforced concrete basements.

What expenditure is eligible for LRR?

Land remediation relief can be claimed for four key categories of expenditure:
Preparatory costs

(consultancy, lab costs, regulatory costs)

Employment and labour costs
Tower Building falling to the ground
Capital expenditure

(equipment purchased to complete the work)

Sub-contractor costs
LLR business at work

How we can help

At DAAFL, our tax specialists have been helping businesses to claim LRR tax relief since 2015. In that time, we’ve helped dozens of businesses claim back over £19m.

  • Our tax specialists will help identify any investment or projects that may be eligible for LRR.
  • We’ll work with you to interpret environmental and remediation reports and examine spending to maximise the cost of qualifying relief.
  • We can even look at previous projects to identify any potential tax savings that were overlooked.
  • Our experts will fill in the necessary paperwork and prepare it for submission to HMRC.