Read on to discover how partnering with On Point Data and Leyton can help unlock the world of tax incentives and reliefs, like Land Remediation (LRR), for your firm’s clients.
At On Point Data, we believe a pillar of great service is going that extra mile for your clients. Spotting opportunities on their behalf and having the knowledge and ability to harness them makes a great solicitor indispensable.
A brilliant way you can identify and add extra value for your clients is by fully understanding what tax reliefs are available. In a previous piece, we discussed how working with our partners, international consulting firm Leyton, can help your firm best navigate Capital Gains Allowances for your clients. But are you aware of Land Remediation relief?
First, what is land remediation relief (LRR)?
Land remediation relief is a very generous tax incentive/relief available to corporate entities who incur qualifying expenditure towards the remediation of contaminated or derelict land and buildings. A key aim here is to encourage the clean-up of brownfield sites and long-term derelict sites. Unlike capital allowances, the relief is available to both capital and revenue expenditure and is also available for residential developers.
What is the current rate of LRR relief available?
The rate of relief available equates to 150% for owner/occupiers who incurred capital expenditure or an additional 50% uplift for property traders on revenue expenditure on the disposal of a site(s).
What kind of expenditure qualifies?
Qualifying expenditure relates to:
- the identification and clearance/treatment of natural contamination such as Japanese knotweed, arsenic and radon gas.
- the identification and treatment of contamination as a result of previous industrial activity such as asbestos, hydrocarbons, harmful chemicals, etc. Essentially, anything which would have the potential to cause relevant harm to living organisms or impact the local ecosystem.
- relief is given for expenditure incurred in removing the following structures from a site which has not been in productive use (derelict) since 1 April 1998;
- post-tensioned concrete heavyweight construction,
- building foundations and machinery bases,
- reinforced concrete pilecaps,
- reinforced concrete basements,
- below ground redundant services (gas, water electricity and telecommunications).
Another key consideration of the regime is the availability of a 16% cash tax credit for loss-making businesses. A company that makes a loss may elect to surrender that part of the loss that is attributable to Land Remediation Relief in return for a cash payment (a tax credit) from the Government.
In summary, LRR is a lucrative tax incentive available for investments made towards bringing contaminated and derelict sites back into productive use.
Want to know more? Contact On Point Data today to discuss Leyton’s offering further. Don’t forget On Point Data’s service is entirely customisable. You don’t need to necessarily conduct your searches with us to benefit from our suite of additional services. Get in touch today to discover how you and your clients could benefit.
This article was submitted to be published by On Point Data as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.
