Land Remediation Relief can provide a valuable cash flow advantage, thus providing a mechanism for making a development viable.
However, before undertaking a purchase of contaminated land and buildings, it is essential that a client:
- makes sure that you or your advisors do not undertake actions that may prevent tax relief from being claimed;
- does not plan the works in a way that would prevent this tax relief from being claimed. This is especially important as an incorrect course of action may lead to additional Landfill tax;
- is aware of how the wording of grant applications may prevent their full entitlement to land remediation relief from being claimed.
Land or buildings containing any contamination, is without a doubt not an attractive selling point of any property. Indeed, many would be investors might be tempted to walk away unless the Vendor offers a suitable discount. However, if the vendor discounts the land or building as a result of the contamination, the opportunity to obtain tax 150% tax relief will be lost.