Asbestos
Removal and encapsulation of asbestos in buildings and the ground.
Corporation Tax Act 2009, Part 14
Land Remediation Relief
A 150% corporation tax deduction for companies that clean up contaminated or derelict land they’ve acquired. Loss-making companies can take a 16% payable tax credit instead.
How the relief works
Land Remediation Relief encourages companies to bring brownfield land back into use. When a company buys land that is already contaminated or derelict and pays to put it right, it can deduct 150% of the qualifying cost from its taxable profits: the cost itself plus an extra 50%.
At the 25% main rate of corporation tax, that is worth up to 37.5p for every £1 spent on remediation. Developers whose costs are already deductible as trading stock can still claim the extra 50%. Where the work is capital, the company can elect for it to be relieved as a deduction instead of being added to the cost of the land.
A company with losses can surrender the land remediation loss for a payable tax credit of 16%, turning the relief into cash.
We usually review remediation alongside a capital allowances claim on the same development, so each cost goes to the relief that gives the most value and nothing is claimed twice.
150%Deduction for qualifying spend
37.5pSaved per £1 at 25% CT
16%Payable credit if loss-making
1998Derelict since 1 April 1998
No change at Autumn Budget 2026HM Treasury consulted from July to September 2026 on changes to Land Remediation Relief, including the derelict land test and timing for developers. At the Budget on 28 October 2026 the government decided not to proceed with any changes at this time, so the relief continues as described here. Read our Budget briefing.
What qualifies
Contamination and dereliction we claim for
Japanese knotweed
Removal of Japanese knotweed, specifically covered by the legislation.
Industrial contamination
Hydrocarbons, heavy metals, ground gases and other pollutants left by former uses.
Natural contaminants
Arsenic and radon, and other naturally occurring contamination.
Derelict land
Removing post-tensioned concrete, foundations, machine bases and underground structures, and reinstating services, on land derelict since 1 April 1998.
Associated costs
Direct staff costs, materials and subcontractor costs incurred on the remediation itself.
Conditions
Six tests the claim must pass
- The claimant is a company within the charge to UK corporation tax
- The land is in the UK and the company has a major interest in it
- The land was contaminated or derelict when the company acquired it
- The company, or a connected person, didn’t cause the contamination
- The cost wouldn’t have been incurred if the land weren’t contaminated or derelict
- The spend isn’t subsidised
Who it suits
Built for brownfield projects
Typical claimants include developers converting former industrial sites, investors refurbishing older buildings with asbestos, and businesses expanding onto land with a history of industrial use or invasive plants.
Because only companies can claim, the structure should be settled before the land is bought. If you’re planning an acquisition, talk to us before exchange.
How we work
From site reports to tax relief
Site review
We review the acquisition, the site investigation reports and the remediation strategy to confirm the land qualifies.
Cost analysis
Our quantity surveyors work through the contractor’s accounts and invoices and isolate the qualifying remediation spend.
Best relief for each cost
Each cost is allocated to Land Remediation Relief, capital allowances or the Structures and Buildings Allowance, whichever gives the better result.
Report and claim
A detailed report for your accountants, with the claim or tax credit made through the company tax return.
Questions
Land Remediation Relief explained
Who can claim Land Remediation Relief?
Companies within the charge to UK corporation tax, including investors and developers. Individuals and partnerships of individuals can’t claim, so ownership structure matters before the land is bought.
What if we caused the contamination?
Relief isn’t available where the company, or a person connected with it, caused the contamination. It is designed for land acquired in a contaminated or derelict state.
Is Japanese knotweed really covered?
Yes. The legislation specifically extends relief to the cost of removing Japanese knotweed, alongside contaminants such as asbestos, hydrocarbons, ground gases, arsenic and radon.
Can we claim capital allowances and LRR on the same cost?
No. Each pound of expenditure can only be relieved once. We allocate the costs so that each item goes to the relief that gives the best result.
Our company is loss-making. Is there still a benefit?
Yes. A loss-making company can surrender the land remediation loss for a payable tax credit of 16% of the loss surrendered.
The works finished a while ago. Is it too late?
Not always. Claims can be made within the normal time limits for amending a company tax return. Talk to us early: the evidence is easier to gather while the contractor’s records are available.
Find out what your property is worth in tax relief
Two minutes, no obligation, and no fee if we can’t identify previously unclaimed allowances.