Opportunities to paying unnecessary tax
Our team is always happy to look at further opportunities to save our Clients from paying unnecessary tax.
The construction of a commercial building provides great opportunities for a commercial property investor to benefit from Capital Allowances where capital expenditure is undertaken.
Background
In 2009 the UK Government extended Land Remediation Relief to address market failure in bringing long-term derelict land back into use. Similar to Land Remediation Relief, this 150% incentive is given where land, whose development has been blighted by various kinds of enduring dereliction, is brought back into productive use.
The intention of the legislation was to encourage long-term abandoned sites to be brought back into productive use. There are criteria that must be met in order to qualify.
Items Qualifying For Derelict land relief
Relief is given for expenditure incurred on removing the following structures left from previous occupation of the site:
- Post-tensioned concrete
- Building foundations and machinery structures
- Reinforced concrete pile caps
- Reinforced concrete basements
- Below ground redundant services e.g. gas, water, electricity and communications.
Criteria Required to Claim Derelict Land Relief
To be derelict the land must be out of productive use and be incapable of being brought back into business use unless buildings or structures on it are removed.
There are no stipulations on the use to which the site was previously put; however, to qualify it must be listed as derelict or have been derelict for at least 10 years.
To count as long term derelict land, the land must have been derelict since the earlier of:
- When the site was acquired by the claimant company, or a connected party; or
1 April 1998.
