Land Remediation Relief

Land Remediation Relief is relief on corporation tax available to companies that buy and develop contaminated or derelict land. The relief, introduced in 2001, was expected to be discontinued in 2012. However, the Government has announced that the relief will now continue to be available.

The Relief

A company subject to UK corporation tax may claim relief on profits equal to 150% (50% for property companies) of "qualifying expenditure" on cleaning up land that it purchased in a "contaminated or derelict state". Qualifying expenditure is capital or revenue spent on establishing the extent of, and carrying out the clean up of, contamination or dereliction: relief on capital expenditure must be claimed in the same year as expenditure. Relief on revenue may be claimed in the year it becomes a deduction for tax purposes.