+44 (0) 20 7329 1300

Land Remediation Relief & Capital Allowances Q&A

What is contaminated land?

For the purposes of this tax relief it is where the land contains substances such as asbestos, Japanese Knotweed or sulphate resistant concrete which are causing harm or could possible cause harm, pollute or possibly pollute controlled waters.

Is there a definition of contaminated land costs?

There is a general definition which is that you have incurred the costs, ‘preventing, minimising, remedying or mitigating any harm or pollution of land or controlled waters, by reason of which the land is in a contaminated state, or restoring the land or controlled waters to their former state’.

images (1)

Who can claim this tax relief?

The relief is not available to individuals or partners, but a company that is a member of a partnership can claim relief in respect of its own share of the partnership’s qualifying land remediation expenditure.

What is the benefit of making a claim for Land Remediation Relief?

It entitles a company to claim an additional 50% for qualifying remediation expenditure as a trading expense, in the same year as the remediation expenditure.

How do I claim and is there a time limit?

For expenditure made on capital account you need to elect within 2 years of the accounts year end in which the expenditure was made.  For property developers the remediation expenditure is on trading account and it is possible to look back and claim up to 4 years after the accounts year end of the qualifying expenditure.  So it is possible to make retrospective claims.

Are there any conditions to claim this tax relief?

The land must be in the UK

The land must be acquired by the company for the purposes of its trade or schedule A business and on acquisition of the land, all or part of the land was in a contaminated state, and the company incurs qualifying land remediation expenditure.

dandelion_RS1597

 

What expenditure qualifies for Land Remediation Relief?

  • Expenditure on land which is in a contaminated state
  • Expenditure on land remediation directly or on its behalf
  • Expenditure on employee costs or materials or is qualifying expenditure on subcontracted land remediation
  • Expenditure that would not have been incurred if the land had not been in a contaminated state
  • Non-subsidised expenditure (for example by the original polluter)

Are there any exclusions?

  • If you have already claimed capital allowances on the same expenditure
  • If you are the original polluter

What information do you need to identify if a claim is possible?

We start with the Site Investigation and soil report, details of works undertaken and the remediation contractor’s priced tender and final account will be scrutinised to extract qualifying items for land remediation relief

Does my accountant need to get involved?

As a specialist we will liaise with your accountant to provide them with a fully disclosed report suitable for submission to HMRC.  Your accountant will need only include the report with your tax return on submission to HMRC.

What if my company is making a loss?

It is possible to surrender that trading loss and receive a land remediation tax credit instead equal to 16% of the total loss.

Are there any restrictions on receiving land remediation tax credits?

There are restrictions which are; the loss that can be exchanged for the tax credit must be no more than 50% of the qualifying land remediation expenditure for any particular accounting period.

The site has been acquired from a connected company, can I still claim?

If the connected company was the original polluter then it is not possible.

bigimage_land

What if my company is the polluter?

It is only possible to claim land remediation relief if you are not the original polluter

Can I get tax relief for removing foundations and concrete and underground services diversions?

It is possible if the land qualifies as derelict land and has been in a derelict state since acquisition and at least since 1 April 1998 and incapable of productive use unless remediated.

What if I already claimed capital allowances on this derelict land?

Relief is not available for capital expenditure for which a claim for capital allowances has already been made, or could be made.

Back to News

OTHER NEWS

john

OTS Review on Capital Allowances and Accounts Depreciation

Lovell Coffee Seminar Oct, 1 and 15 Nov 2017

New Capital Allowances CPD Semimar Dates

EGA_220717_301_REV

20 Years of Capital Allowances

20170719_133055

Lovell Consulting Capital Allowances Student Prize Winner 2017

Lovell Coffee Seminar Sep, Oct and Nov 2017

New Capital Allowances CPD Seminar Dates

Cabot_Square,_Canary_Wharf_-_June_2008

Pension Funds and Capital Allowances Interactions

lexis

Lexis Nexis Webinar – Capital Allowances in 2017

Lovell Coffee Seminar May and June 2017

New Capital Allowances CPD Seminar Date & Speakers Announced

Kaca_film_40%

Capital Allowances and Demountable Partitions; To Move or Not to Move?

1966_Sunliner_caravan_(6262976143)

Employees Claiming Capital Allowances: Caravan Case Demonstrates Hurdles!

Midland_Hotel,_Morecambe,_Lancashire,_England-31Aug2010_(3)

Capital Allowances, Corporation Tax Loss Relief & Interest Deductions – Act Now

British_Houses_of_Parliament

Corporation Tax Loss Relief & Interest Deductions: Capital Allowances

Bar

New 2017 Capital Allowances CPD Seminar Dates Announced

1872042_8c5756ec

Capital Allowances, Trustees and Tax Havens

buildings-1245684_960_720

Interview: A Little Capital Allowances Knowledge Can Be Dangerous

3638890517_7161f4c331_z

MBL Seminar Dates Announced (Capital Allowances in Retail, Hospitality & Offices)

new-picture-56

2016 Lovell Consulting Capital Allowances Art Prize Voting Begins

1

Capital Allowances in the Retail Sector

Palm with a plant growng from pile of coins

Free Cash, Tax Savings & Capital Allowances for SMEs Going Green

2276927_4f106630

Student Accommodation & Capital Allowances

blake-h-portrait

Lovell Consulting Capital Allowances Student Prize Winner 2016

pexels-photo

Capital Allowances within Offices

MBL Webinar

MBL Webinar – Capital Allowances for Property Surveyors

2414578731_82c451232d_b

Capital Allowances & Data Centres

taxjournal-logo

Tax Journal Interview: One minute with…John Lovell, Capital Allowances Specialist

Odeon_Barnet,_High_Barnet,_EN5_(4497059063)

Claiming Capital Allowances and / or Repairs

york-united-kingdom-empty-street

Commercial Property Standard Enquiries: Capital Allowances

New Picture (54)

LexisNexis Webinar – Tax for General Practice & Capital Allowances

England1_144

Artful Plant: When Capital Allowances may be Claimed on a Painting

New Picture (44)

LexisNexis Webinar – Commercial Property Law & Capital Allowances

Thumbs_up_bluefilter

New Capital Allowances Team Appointment – Glenn Ramos

New Picture (48)

MBL Webinar for Property Lawyers and Tax Advisers (Capital Allowances)

Gherkin_stitch

Fundamental Changes to Interest Deductions & Impact for Capital Allowances

playground-99509_960_720 - Copy

Capital Allowances within Childcare Facilities & Schools

Royal_Coat_of_Arms_of_the_United_Kingdom_(HM_Government).svg

John Lovell Comments: 2016 Budget – Impact on Capital Allowances: Commercial Property

Thumbs_up_bluefilter

Capital Allowances Team Announcements

MamaMarseille

Better Call Lovell for Capital Allowances

0928aa_ee33b990a61e441d83d6b257a590d366

Lovell Consulting Capital Allowances 2015 Art Prize

Lexis

LexisNexis Capital Allowances Webinar with John Lovell & Ronak Shah

x-default

Plant in Garden Centres: Claiming the Right Kind for Capital Allowances

1280px-Serpentine_Gallery_Pavilion_5_(2732918169)

Can an Accountant Claim the Capital Allowances without Specialist Support ?

New Picture (33)b

John Lovell Capital Allowances talk at Chartered Institute of Taxation Conference

Albert_dock_at_night

Enterprise Zones & Capital Allowances

14228109324_186f38de00_o

Capital Allowances & Landlord Contributions to Tenant Fitting Out Works

wall-of-keys

10 Key Qualities To Look For In A Capital Allowances Advisor

aMaiFZY

Capital Allowances within Private Member Clubs

iStock_000005218304Small

Effective Dealing with HMRC for Capital Allowances

Taxation Feedback Article

Taxation Feedback: Capital Allowances

rooms+cover

Capital Allowances within Restaurants

Poole2-VTerraceC

Capital Allowances within Nursing Homes

Little Book

Little Book of Big Capital Allowances Savings

xglobal-REIT-ETF.jpg.pagespeed.ic.U54haEqpZd

Real Estate Investment Trusts: Get The REIT Advice on Capital Allowances

Siemens-6MW-Wind-Turbine

Wind Turbines and Capital Allowances

cont land

Contaminated Land – The Big Clean Up for Capital Allowances

New Picture (20)

Capital Allowances & Furnished Holiday Lets

CT_Lobby_01-of5a411

Capital Allowances Hidden Gems within Hotels

tax_1815371c

Helpful Tips for Claiming Capital Allowances in Tax Returns

Tax-question_300_2

Why Do I Need A Capital Allowances Specialist?

Inspired Capital Allowances Savings_Page_1

Inspired Capital Allowances Savings

580_Image_homes_new_oldham

Private Rented Sector (PRS) & Capital Allowances: Key Planning Points

london-6

Drafting For Purchase Contracts And CPSE Capital Allowances Responses

The Great Hall, University of Reading

Lovell Consulting Capital Allowances Student Prize Winner 2015

George Osborne Summer Budget 2015

Summer Budget 2015: Property Tax Updates & Impact for Capital Allowances

???????????????????????????????

The Benefits of Claiming Annual Investment Allowances

LN

Lawyers Should Seek Specialist Capital Allowances Advice

Lovell_Consulting_Groups22-1500w

The New Environment For Capital Allowances

Capital Allowances demolition costs

Capital Allowances – Demolition Costs

Capital Allowances - Asbestos Removal

Capital Allowances – Asbestos Removal

wooden-judges-gavel-1024x678 (2)

Capital Allowances Case Summary: Bowerswood House Retirement Home

wooden-judges-gavel-1024x678 (2)

Property Tax Case Summary: Terrace Hill (Berkeley) Ltd: Impact for Capital Allowances

OLYMPUS DIGITAL CAMERA

Business Premises Renovation Allowance (BPRA) Case Summary: Senex Investments

Construction Expenditure image

Capital Allowances Savings for Construction Expenditure

58767673

Recent Capital Allowances Case Study

wooden-judges-gavel-1024x678 (2)

Capital Allowances Case Summary – Rogate Services

crest(300x380)

Lovell Consulting Capital Allowances Student Prize Winner

wooden-judges-gavel-1024x678 (2)

Capital Allowances Case Summary – LLPs and AIA

Kirsty and Mike 2

New Capital Allowances Team Members

See Saw 2-10 (2)

Lovell Consulting Capital Allowances 2014 Art Prize

EGA_030514_301.indd

Recent Lovell Consulting Press Coverage: Capital Allowances

Lovell_Consulting_Groups05

April 2014 Capital Allowances Fixtures Rules

budgetbox_1107228c

The Budget of 19 March 2014 Announced a Number of Capital Allowances Changes

Lovell_Consulting_Groups22-1500w

Capital Allowances Case Update – The Granleys

Holiday Lets 2

Capital Allowances on Furnished Holiday Lets

wetherspoons-woking-01

Capital Allowances Case Update – Wetherspoon

budgetbox_1107228c

The Budget of 23 March 2012 Announced a Number of Capital Allowances Changes