Land Remediation Relief
Land Remediation Relief provides companies with an enhanced Corporation Tax deduction for expenditure incurred in cleaning up contaminated or derelict land that was acquired in that condition. For property developers and investors acquiring brownfield or contaminated sites, this relief can provide a significant additional tax benefit.
What are the benefits?
150% Enhanced Deduction
Companies can claim a 150% Corporation Tax deduction on qualifying remediation expenditure — meaning for every £100 spent on qualifying remediation, £150 is deducted from taxable profits, producing a net saving of 37.5p per £1 of expenditure (at 25% CT rate).
Broad Qualifying Expenditure
Qualifying expenditure includes the cost of removing or treating contaminants (including Japanese knotweed), dealing with ground instability arising from historic mining or underground extraction, and radon gas treatment.
Payable Tax Credit for Loss-Making Companies
Where the 150% deduction creates or increases a trading loss, companies can surrender the loss for a payable tax credit at 16% — providing a cash recovery even where the company has no tax to pay.
Derelict Land
Buildings and structures on derelict land that was previously used for industrial purposes can also qualify for Land Remediation Relief, providing additional incentives for brownfield development projects.
How can Zenus Tax help?
We assess whether your land acquisition and remediation activities qualify for Land Remediation Relief
We quantify the qualifying expenditure and prepare the enhanced deduction claim
We advise on the payable credit option for loss-making companies
We ensure the relief is correctly reported in your Corporation Tax return
Frequently Asked Questions
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