Land remediation relief and derelict land relief is typically claimed on property development, regeneration, refurbishment and fit out projects. It provides a deduction of 100% of the qualifying land remediation relief expenditure, plus an additional 50%, for qualifying expenditure incurred by companies, in cleaning up land and buildings, acquired from an unrelated third party in a contaminated state.
The contaminating substance must be either causing “relevant harm” to the land, the buildings, the groundwater, streams, or the health of humans or animals. In addition, the cost must be directly related to remediating the contamination, and must be extra over costs, not costs for items that you would normally expect to incur in the project. If the remediation work is not carried out, then there is no tax relief.
The tax relief available at 150% can be valuable and help to enhance cash flow at the start of any construction project.
For more information on land remediation relief download our guide to land remediation relief and derelict land relief.