Understanding LRR

Land Remediation Relief (LRR) enables businesses to claim relief from corporation tax on 150% of the cost of remediating contaminated or derelict brownfield land or property. This can include costs spent on cleaning-up harmful substances or the removal of structures to allow the land to be put to productive use.

Costs qualify for relief if the expenditure is incurred on land which is in a contaminated state and would not have been incurred if the land had not otherwise been in a contaminated state. This can include:

Staffing costs
Materials required to remove the contamination
Any preliminary work to establish the level and work on remediation required
Sub-contracted work in relation to the remediation
Providing a capping layer to provide a barrier

Companies with qualifying land remediation losses for an accounting period can make a claim to surrender that loss, in return for a payment of land remediation tax credit.

WHEN CAN’T YOU CLAIM?

If the contamination was caused by the claimant
If the company was served with a statutory notice to carry out the work
If the company has received a grant for the cost of remediation