If you, or your clients, have developed, brownfield sites or have refurbished commercial property assets, then Land Remediation Relief can help improve cash flow and profitability. Land remediation relief can be claimed on past developments and can add value to future projects.
The current economic climate makes any property development or refurbishment financially challenging. Yet the remediation of brownfield sites and redevelopment of older properties can attract this valuable tax relief and improve the viability of schemes.For developers this is currently the only corporation tax incentive available, and because of recent tax law changes non-UK resident company landlords are now able to claim the relief for the first time. So, it should not be overlooked.
Introduced in 2001 and modified in 2009 Land Remediation Relief (LRR) is still one of the most generous tax reliefs available to property developers and investors. The relief provides a tax deduction of up to 150% of the money spent on qualifying expenditure on brownfield sites and buildings. The relief is claimed in a company’s corporation tax return. The actual cash value of the relief depends upon the accounting treatment of the expenditure.