Land Remediation Relief, or LRR, has the potential to provide an enhanced deduction in corporation tax, of up to 150%.
LRR encourages the redevelopment of brownfield sites and derelict properties, which were recognised as having immense developmental potential.
Our Technical Consultants are well versed in this lucrative benefit which is often overlooked by smaller property developers and investors. Additionally, qualifying expenditure is likely to be miscalculated due to the uncertainty surrounding the conditions within the legislation.
The Scheme
LRR can be achieved by offsetting qualifying land remediation expenditure against taxable profits, or by surrendering the losses in return for a land remediation tax credit.
The cash value of the relief depends upon the accounting treatment of the expenditure. For revenue expenditure, this can be a total of 9.5% of qualifying costs, while for capital expenditure recovery can be up to 28.5%.
Qualifying costs for this scheme include:
- Professional fees, such as the Quantity Surveyor;
- Removal of Asbestos; and,
- Cost of materials used in the Remediation works.
What are you entitled to?
If you are a developer or property investor, you are entitled to up to 50% of your qualifying remediation expenditure.
However, if you are an owner or occupier you are entitled to up to 150% of your qualifying remediation expenditure.
If you would like to find out more about Land Remediation Relief and how we can assist you, please submit the following information and we will be in touch.