Pay Less Tax – Autumn 2026 Edition
Pay Less Tax Autumn 2026 Edition Discover the latest updates and pick up practical tips that could help your business to grow. To discuss how these changes could affect you,…
Land Remediation
Expenditure on services such as asbestos removal,
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.
Reduce Your Tax Liability
We review your eligibility, manage your application and reduce your tax liability in four simple steps
Fact finding
We ask a few simple questions about your company and the qualifying work you have undertaken. This helps us understand whether you may have a claim.
Eligibility & Review
We review your answers and explain the relief available to you. We then review your records in detail to identify any costs that may qualify.
Claim Preparation
We prepare your claim and explain the process clearly. We then submit the claim to HMRC on your behalf, keeping your existing adviser fully informed.
HMRC & Outcome
We deal with any questions from HMRC and support you through to the outcome. Once approved, the claim can result in a reduction in Corporation Tax or a refund.
Companies that qualify for LRR
Owner-occupiers (own trading premises)
A company that owns the freehold/leasehold of the land and buildings from which they trade from.
Investors or property developers
A company that owns land and buildings for commercial letting, or one that owns land and buildings to develop and sell for a profit.
Corporate partners of LLPs
A company that is a member of a partnership can make an election in respect of its share of the partnership’s land remediation expenditure.
Life assurance companies
Land Remediation Relief can apply to life insurance companies carrying on Basic Life Assurance and General Annuity Business.
REITs
A Real Estate Investment Trust is a vehicle that allows an investor to obtain broadly similar returns from their investment, as they would have, had they invested directly in property.
What are the main conditions to be eligible for LRR?
- Land/buildings must be in the UK and they must have been acquired for the purpose of the company’s own business or property rental (investment).
- The company must be a freeholder or long leaseholder (i.e. 7 years+)
- Expenditure cannot be subsidised (e.g. through grants, compensation, insurance, etc).
- The land/buildings must have been contaminated at the time of acquisition from previous industrial activity.
- Neither the company nor any person connected with the company can be responsible for the contamination.
- The company must incur qualifying expenditures, e.g. asbestos removal.
- The land must not be a nuclear site.
FAQs
What expenditure qualifies for LRR?
– Preparatory costs, risk assessments, surveys etc.
– Staffing/employee costs
– Materials
– Life assurance companies Sub-contracted costs, e.g. survey feeds, and environmental consultancy fees.
What types of claims are there?
1. Investors (e.g. landlords) and owner-occupiers
– Claim in the year of expenditure
– Time limit of 2 years from the end of the period
– Materials LRR rate is 150% of qualifying costs
– Net cost to the company is 62.5%
2. Developers
– Claim in the year of expenditure or sale of the property
– Time limit of 4 years from the end of the period
– Materials LRR rate is 50% of qualifying costs
– Net cost to the company is 87.5%
What types of contaminants are typical for LRR claims?
The following contaminants are typical for LRR claims:
– Asbestos
– Heavy metals (e.g. lead, arsenic, cadmium)
– Hydrocarbons (e.g. petroleum, diesel, oil)
– Pesticides and herbicides
– Solvents (e.g. chlorinated solvents)
– Tar and bitumen
– Coal tar derivatives
– Creosote
– Cyanide
– Radon gas
– Japanese knotweed
What is contaminated land?
Land is in a contaminated state if something in/on/under the land is in a condition that is causing harm, or there is a serious possibility that relevant harm will be caused.
Relevant harm means:
– Death or significant injury to living organisms
– Significant pollution of controlled waters
– A significant adverse impact on the ecosystem
– Structural or other significant damage to buildings
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.
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