Land remediation relief

By Tolley

The following Corporation Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Land remediation relief
  • Overview of land remediation relief
  • Relief available for land remediation expenditure

Overview of land remediation relief

Companies that acquire contaminated or derelict land for the purposes of their trade or UK property business can claim an enhanced deduction of 150% for clean-up costs. The relief is not available to individuals or partnerships. However, a company that is a member of a partnership can claim relief for its share of the partnership’s qualifying land remediation expenditure.

By election, relief can be claimed by a company for capital expenditure incurred on remediation of land acquired for use in its trade or for its UK property business to be given as a 150% revenue deduction in computing the profits of that trade or business, although not for expenditure that qualifies for capital allowances.

Where the enhanced deduction results in a loss then the loss can be used in the normal way or it can be surrendered in return for a cash payment.

Further details of land remediation relief can be found in CIRD60000.

See also Simon’s Taxes D1.5.

Qualifying conditions

The qualifying conditions for the relief are that the company has acquired a major interest in the land in the UK for the purposes of a UK property business or a trade carried on by the com

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