Land Remediation Relief (LRR) is a Corporation Tax incentive designed to encourage companies to bring contaminated or derelict land and buildings back into productive use.
Where the relevant conditions are met, qualifying remediation expenditure can benefit from an additional 50% deduction, giving a total tax deduction of 150% of the qualifying cost.
The relief can apply to a range of remediation activities, including dealing with contamination, removing certain hazardous materials and addressing certain structures or substances that prevent land or buildings from being brought back into use.
Why LRR Claims require specialist advisory?
The complexity of LRR lies in determining when and how relief can be claimed, considering the financial treatment of costs, strict statutory conditions, and the technical evidence needed to distinguish remediation from general development work.
LRR can be relevant to companies that acquire, develop, redevelop or occupy property where remediation is required. The detailed eligibility conditions depend on the circumstances of the property and the remediation work undertaken.
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We review remediation costs on brownfield sites where contamination or dereliction may support a Land Remediation Relief claim. This includes projects where potential qualifying expenditure is mixed with enabling works, construction costs or wider development spend.
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We assess acquisition facts, land condition, polluter position and remediation records where a company has acquired land or buildings with contamination or dereliction issues.
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We support trading companies that incur remediation costs before bringing land or buildings into use for their own business.
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We prepare structured claim analysis, cost schedules and evidence notes so accountants and finance teams can review the Land Remediation Relief position for Corporation Tax treatment.
A Land Remediation Relief claim is not supported by remediation spend alone. Bonham & Brook reviews the company position, land condition, remediation works, cost records and supporting evidence before preparing a claim position for Corporation Tax treatment.
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We assess whether the claimant is a company and whether the claim can be considered within its Corporation Tax position.
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We review how the land was acquired, held and used to assess whether the ownership position supports the claim basis.
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We check whether reports, surveys or site records support a contaminated or derelict land position.
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We identify work carried out because of contamination or dereliction, rather than general development, construction or refurbishment.
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We separate potential remediation expenditure from wider project costs and flag items that need further review.
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We connect reports, contractor scopes, invoices, surveys and cost schedules to the claim position.
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We review whether the claimant or a connected party may have caused or contributed to the contamination or dereliction.
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We assess the relevant accounting period, return status and route for claim preparation or amendment.
From remediation costs to a supported claim position. Not every cost on a contaminated or derelict land project belongs in a Land Remediation Relief claim. Bonham & Brook reviews why the work was required, what land condition it addressed, how the cost was recorded and whether the evidence supports the claim position.
First we check whether the records support a contaminated or derelict land basis. We then review the property and acquisition circumstances to establish whether LRR may apply.
Step 01
We analyse project expenditure and supporting records to identify which works were required as a consequence to the land's condition.
Step 02
We separate potential remediation costs from development, construction or refurbishment spend, calculating the available enhanced deduction and its impact on the company's tax position.
Step 03
We provide the supporting analysis and documentation required to include the relief within the company's Corporation Tax claim. We connect reports, scopes, invoices and cost schedules to the claim basis.
Step 04
Land Remediation Relief sits across property, construction and taxation.
Our team brings practical experience of property and construction projects alongside specialist tax knowledge.
We understand that remediation costs are often embedded within much larger development or refurbishment projects. Our role is to identify the expenditure that can legitimately qualify and provide a clear, evidence-based approach to supporting the claim.
Chris brings over 30 years of business experience, including more than 15 years in senior commercial and leadership roles across accountancy, business and tax advisory firms. He joined Bonham & Brook from a long-established capital allowances business and leads the development of our property an...
Associate Director - Head of Property Tax
Tom comes from a strong Hospitality background sprinkled with a little bit of construction. Whilst studying for his degree in history, Tom found success working in stadium hospitality with a variety of management roles across some of London’s most historic sporting venues. These experiences helped T...
Assistant Manager, Technical Consultants
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If your business has acquired, developed or refurbished land or buildings where contamination or dereliction has created additional costs, there may be an opportunity to claim Land Remediation Relief.
