Land remediation relief is a process by which businesses can claim back tax on any work required to make land suitable for development. It’s a way for businesses to save money but it’s not something that all companies know about. In this guide, we’ll explain what land remediation relief is in more detail and tell you how your business can go about claiming it.
What is land remediation relief?
Land meditation relief was first introduced by the UK government in 2001 and changed in 2009. It allows companies to claim tax relief of up to one and a half times the money spent on clearing and cleaning contaminated land.
According to guidelines, land is considered to be contaminated if it causes, or could be at risk of causing, harm to animals, people, or buildings, or if it is polluting rivers or waterways.
Who can claim land remediation relief?
Any company or business can claim remediation relief provided they meet certain criteria, including that:
-the company has had a freehold or lease on the contaminated site for at least 7 years
-the land was purchased by the company while it was in a contaminated state.
How to make a land remediation relief claim
Land remediation relief is claimed when a company does their annual tax return. Costs that can be considered for relief as part of the scheme include:
-the cost of paying employee’s wages
-the cost of buying materials to use in the remediation work
-payments made to subcontractors to support the process of remediation
-payments made to land remediation service companies, such as https://soilfix.co.uk/, to assess the level of contamination, and give advice on making it ready for redevelopment.
The amount companies spend on removing contamination from land can be split into ‘capital spend’ (for example the initial funds used to purchase the contaminated land) and ‘revenue spend’ (the daily, ongoing expenses), which are claimed at different rates.
If you’re not sure how to make a remediation claim, there are many companies that can help you through the entire process.