This furniture manufacturer relocated to a larger site. Due to the nature of the trade, there were no sites available which met the business’s requirements and so the company had to purchase land and build a facility.
The land purchased was originally used as a processing site for the chemicals industry. As a result, there was significant contamination remaining on the site. The company had remediation studies carried out to understand the extent of the contamination and compiled a full remediation works plan.
After completing the work, the total expenditure on remediating the land was £100,000. The additional uplift available for the tax relief was £50,000 and, as the company was loss-making during that period, they surrendered this amount for a cash credit of £24,000.
