Land Remediation Relief

Land Remediation Relief attracts 150% tax relief and can be claimed by both developers and investors, regardless of whether the site is held as a fixed asset or as trading stock.

Land Remediation Relief

In 2001, the Labour Government introduced one of the most generous tax reliefs available to incentivise the regeneration of derelict, contaminated and disused land. This doesn’t just apply to contaminated land but also includes removal of asbestos in existing buildings.

If you are an investor, 150% tax relief equates to the recovery of 28.5% of the total qualifying expenditure in the year of expense. If you are a developer 9.5% of the total expenditure can be recovered, usually at the point of disposal. For loss-making companies, a tax credit equal to 24% of the total qualifying expenditure is available, which can be a significant cash flow boost particularly early in a development programme.

How we can help

As part of a land purchase, one of the first elements of an appraisal is to understand the potential costs associated with the removal of natural and man-made contamination or below ground services. The implications of identifying these types of issues could have a bearing on the purchase price and even at the Heads of Terms stage, it is advantageous to assess the scope of qualifying remediation works. The potential cash flow benefit can have a considerable impact on a site appraisal and without specialist involvement, it is difficult to assess the true extent of Land Remediation Relief.

Our ability to interpret site investigation, environmental and remediation reports to identify the costs of qualifying remediation works has become indispensable to our clients.

With over 20 years’ experience of maximising Land Remediation Relief on behalf of our clients, we add a significant cash flow benefit and the reassurance that your reputation is protected with HMRC.

 

Access to our Real Estate Advisory Services

Being part of Gateley allows us access to one of the most experienced house building and commercial development legal teams in the UK. In addition, Gateley Hamer provides specialist advice around land issues relating to utilities constraints and compulsory purchase.  Combined, we offer a unique advisory service that can mitigate risk and enhance cash flow when bringing a site back to use.

Find out more

Enhanced capital allowances

Attracting a 100% first-year allowance, enhanced capital allowances are an important consideration at design stage planning for asset management and new build construction projects.

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Case study – Historical review of data centre’s enhanced capital allowances

We were invited by a major data centre operator to review £27m of historical expenditure to validate whether the enhanced capital allowances entitlement had been maximised. Our review found qualifying expenditure was undervalued and we were able to improve the total value by a factor of 10.

View case study

Tax incentives on property development

Developers who take advantage of the full array of available fiscal incentives often see a marked improvement in cash flow, in turn improving margins and mitigating financial risk.

Read more

Speak to the team

Aubrey Calderwood

Director

Specialisms:

  • Technical application of fiscal incentives legislation for complex transactions and investment projects
  • Tax incentives for regeneration and sustainability developments
  • Major construction and development projects

+44 (0) 28 9026 9910

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Kevin Meyer

Director

Specialisms:

  • Multi-site owner and occupier portfolio analysis and statistical agreements
  • Sports stadium construction and redevelopment
  • International tax depreciation and cost segregation analysis

+44 (0) 121 212 7739

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Chris Bird

Business Development Manager

Specialisms:

  • Enquiry management
  • Relationship management
  • New client development

+44 (0) 121 234 0271

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Contact us

Whether it’s a current investment project or you would like to discuss a historical review of expenditure, we can help.

Contact us