Land Remediation Tax Relief (LRTR)

Introduced in 2001, this relief provides financial benefit to companies looking to develop contaminated brownfield land and to encourage bringing long term derelict sites back into use.

It provides an enhanced tax deduction of 150% of the relevant cost – as an incentive to clean up contaminated land and property or to clear obstructions on derelict sites. The deduction applies to qualifying land remediation expenditure and treats every £100 spend as if it were £150.

In tax terms, this legislation is very new and features many conditions on entitlement and anti-avoidance provisions. It offers considerable benefits, but making a valid claim requires considerable skill and understanding.

Your proposed brownfield development or derelict site may qualify for this relief, so contact our team and we can determine whether you can take advantage of this beneficial allowance. It may change a marginal project into a very profitable opportunity.

Up to 150% of all eligible expenditure can be set against profits; creating savings of up to 42%

Numbers
An Investor incurring qualifying remediation expenditure of £200,000:
	With LRTR (£)	With No LRTR (£)
Profits	1,000,000	1,000,000
LRTR (150%)	(300,000)
	700,000	1,000,000
Tax payable	161,000	230,000
(at 23%)

35% cash saving = £69,000

www.rocheassociates.co.uk
Head Office Saira Puffett T: 01923 428 746 E: sairapuffett@rocheassociates.co.uk	Southern Office Paul Munday T: 01794 899 028 E: paulmunday@rocheassociates.co.uk

Land Remediation Tax Relief (LRTR)

Numbers

An Investor incurring qualifying remediation expenditure of £200,000: