Supporting a hotel operator through a Land Remediation Relief claim for decontaminating a building

A hotel operator undertaking a large-scale refurbishment uncovered vast amounts of asbestos. We were able to guide our client through a significant Land Remediation Relief claim.

Land Remediation Relief (LRR) is a generous enhanced tax deduction of 150% for money spent by companies to remediate contaminated land and buildings. This can include removing asbestos or dealing with harmful hydrocarbons or chemicals and even some naturally occurring substances such as Japanese Knotweed, radon and arsenic. Breaking-out buried structures or services in the ground at long-term derelict sites can also qualify.

Whilst the name of the relief might suggest that the problem must exist in the ground, it can just as much be located in the building, as in this example of a property where large amounts of asbestos removal were necessary as part of a renovation/ refurbishment.

What you need to know

LRR is available for both residential and commercial property, and all types of projects including developments, regeneration projects, fit outs and refurbishments.

When claimed by an investor or occupier, LRR increases cashflow by 28.5p for every pound of qualifying spend, or for a trading-developer it is worth 9.5p in the pound. And a loss-making company can even give-up its tax losses in return for a cash payment from HM Revenue, called a ‘tax credit’, which is worth 24p in the pound.

Retrospective claims can be made but there is a time limit, so don’t delay in seeking advice.