When it comes to commercial property development or land acquisition, every pound counts. Yet across the UK, countless businesses are missing out on a little-known but highly valuable tax incentive: Land Remediation Relief (LRR).
Whether you’re a property developer, investor, or company acquiring land for your operations, failing to claim LRR could mean you’re leaving significant tax savings buried, quite literally, in the ground.
In an economic climate where margins are tight and every advantage matters, can you really afford to miss out?
What is Land Remediation Relief?
Land Remediation Relief is a UK tax incentive designed to encourage the clean-up of contaminated or derelict land.
Introduced to support regeneration and bring neglected land back into productive use, LRR offers substantial tax benefits to companies undertaking qualifying works.
Eligible businesses can claim:
- A tax deduction of 100% of qualifying clean-up costs, plus
- An additional 50% uplift, meaning a total deduction of 150% of qualifying expenditure from taxable profits.
For companies making a loss, a cash tax credit may also be available — providing a valuable injection of funds.
Who Qualifies?
If your business is cleaning up land or buildings acquired in the UK, and you’re paying corporation tax, you could be eligible.
Typical claimants include:
- Property developers and housebuilders
- Investors acquiring contaminated land
- Businesses constructing new premises on brownfield sites
- Companies dealing with derelict structures or contamination on owned land
Many businesses wrongly assume that only ‘heavily polluted’ sites qualify, but LRR covers a broad range of scenarios.
What Types of Land and Contamination Qualify?
LRR applies to land acquired in a contaminated or derelict state, where remediation is necessary to enable development or occupation.
Qualifying situations include:
- Land contaminated by industrial activities
- Sites with hazardous substances present — e.g., hydrocarbons, asbestos, Japanese Knotweed
- Removal of buried structures such as foundations, reinforced concrete, and redundant utility services
- Buildings that have been derelict for a prolonged period (typically 7+ years)
Real-World Example:
A property development company acquires an urban brownfield site containing old concrete slabs and asbestos materials. During redevelopment, they incur significant costs removing contamination and structural obstructions.
Under LRR, the company can claim a 150% tax deduction on qualifying costs, significantly reducing their corporation tax liability, or securing a cash refund if making a loss.
The Hidden Opportunity – Are You Missing Out?
Despite the generosity of the relief, HMRC statistics consistently show that LRR is underclaimed, especially among SMEs and mid-sized property investors.
Why do businesses miss out?
- Lack of awareness – many have never heard of LRR
- Misunderstandings – assuming their land isn’t ‘contaminated enough’
- Overlooking eligible costs – remediation works are often bundled into wider project expenses
- Poor record-keeping – making claims difficult to substantiate after the fact
In other words, millions of pounds in tax savings go unclaimed every year, money that could be reinvested into your business, improve cash flow, or enhance project viability.
Time is of the Essence
The opportunity to claim LRR isn’t open-ended. Claims must be submitted within the normal corporation tax time limits which is typically two years from the end of the relevant accounting period.
That means delays in recognising eligible costs or engaging with a specialist adviser can result in missed deadlines and lost tax savings.
Additionally, with increasing HMRC scrutiny around tax relief claims, it’s essential to get your submission right the first time.
Poorly prepared or non-compliant claims can lead to enquiries, delays, or even penalties.
How We Can Help
At Williamson & Croft, we specialise in helping businesses unlock hidden tax savings and Land Remediation Relief is one of the most overlooked opportunities we encounter.
Our dedicated tax team will:
- Assess your project for eligibility — even if you assumed you didn’t qualify
- Identify all qualifying costs, including often-missed expenses
- Prepare a robust, compliant claim, minimising risk and maximising benefit
- Liaise with HMRC on your behalf
- Integrate LRR into your wider tax planning strategy
We’ve helped clients across property development, construction, and other sectors save thousands, sometimes hundreds of thousands, through strategic LRR claims.
Don’t Leave Tax Relief Buried! Claim What You’re Entitled To
If your business has acquired land or completed development works involving site clean-up, don’t assume you’ve missed your chance. Even recent projects could qualify for a substantial tax deduction or cash credit.
In today’s market, missing out on Land Remediation Relief means sacrificing a competitive edge and giving away tax savings that could be funding your next project.
Contact our expert tax team today for a no-obligation review of your project and discover if there’s money buried in your land that we can help uncover.