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 Northern Accountants, we can review your eligibility, manage your application and reduce your tax liability in seven simple steps:
Fact find questionnaire
Eligible expenditure review
Submission to HMRC
Reduced/Refunded CT monies
+ 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
Entities that don’t qualify include:
Local authorities and public bodies (unless corporate entity)
+ What are the main confirtions 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.
– Services contracted out.
– Sub-contracted expenditures such as:
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%
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.
“Moved to NA after growth of the company meant we needed more accountant support. The team are amazing. So professional and advanced in technology that everything is simple and easy. I can not recommend the team highly enough. They made the transition from our previous accountant seamless. If you are looking for new accountants look no further you will not be disappointed! Thanks again Phil, Jayne and the team. Amazing work and so happy to be working with you.”
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