Land Remediation Relief

Expenditure on services such as asbestos removal, remediation works, and surveys qualify for enhanced tax relief. Do you know how your business can benefit?

What is Land Remediation Relief?

Land Remediation includes business expenditure on services such as asbestos removal, remediation works, surveys and more. Such costs qualify for enhanced tax relief, where businesses can claim up to 150% of the costs to reduce their tax liability.

Our team is on hand to provide a full review of your business’s eligibility, plus preparation of the LRR report to satisfy HMRC.

What’s The Process?

Here at Omega Asbestos Consulting, we can review your eligibility, manage your application and reduce your tax liability in seven simple steps:

Step 1.

Fact find questionnaire

Step 2.

Eligibility assessment

Step 3.

Technical meeting

Step 4.

Eligible expenditure revue

Step 5.

Report production

Step 6.

Submission to HMRC

Step 7.

Reduced/Refunded CT monies

FAQs

Who qualifies for LRR?

Must be a UK company subject to Corporation Tax.

Companies that qualify:

  • Owner-occupiers (own trading premises)
  • Investors or developers
  • Corporate partners of LLPs
  • Life assurance companies
  • REITs

Entities that don’t qualify include:

  • Pension funds
  • Private individuals
  • Local authorities and public bodies (unless corporate entity)
  • Schools

What are the main confirmations of an LRR claim?

  • Land/buildings must be in the UK and it must have been acquired for the purpose of client’s own business or property rental (investment).
  • The client must be a freeholder or long leaseholder (ie 7 years+).
  • Expenditure cannot be subsidised (eg through grants, compensation, insurance etc).
  • The land/buildings must have been contaminated at the time of acquisition from previous industrial activity.
  • Neither the client nor any person connected with the client can be responsible for the contamination.
  • The client must incur qualifying expenditures, eg. asbestos removal.
  • The land must not be a nuclear site.

What expenditure qualifies for LRR?

  • Preparatory costs, risk assessments, etc.
  • Staffing/employee costs.
  • Materials.
  • Services contracted out.
  • Sub-contracted expenditures such as:
    Asbestos removal
    Remediation works.
    Survey fees.
    Professional fees, environmental consultant

What types of claims are there?

1. Investors (eg landlords) and owner-occupiers:

  • Claim in the year of expenditure.
  • Time limit 2 years from the end of the period.
  • LRR rate is 150% of qualifying costs.
  • Net cost to the client is 71.5%

2. Developers:

  • Claim in the year of expenditure or sale of the property.
  • Time limit 4 years from the end of the period.
  • LRR rate is 50% of qualifying costs.
  • Net cost to the client is 90.5%

How is LRR claimed?

  1. A claim is made through the client’s company tax return following the end of the accounting year.
  2. The report prepared to show details of the qualifying expenditure and LRR calculation, which is attached to the tax return for the agreement with HMRC.
  3. A profitable client can claim a reduction in tax.
  4. A loss-making client can instead claim a tax credit (repayment), for example, £100k of qualifying expenditure @ 150% LRR = £150k, tax credit claimed at 16% x £150k = £24,000.
Contact us to find out more

HEAD OFFICE

Wellsprings Business Centre, Durham Road West,
Bowburn, Durham DH6 5AU

TEL: 0191 377 0900    EMAIL: [email protected]

YORKSHIRE OFFICE

Suite 14 
Ripponden business park
West Yorkshire HX6 4FF

Tel: 01422 340 340

LONDON OFFICE

Office 7
35-37 Ludgate Hill
London  EC4M 7JN

Tel: 020 3745 9720