Land Remediation Relief is available to parties incurring expenditure on cleaning up contaminated land acquired from a third party. Contaminated land can be something as common as uncovering unexpected asbestos, to arsenic contamination.
If it has the potential to cause serious harm to people, animals, buildings or the wider environment, chances are, you can claim this relief.
Land Remediation Relief is available on a much larger number of projects than many realise, and is often under claimed, or even completely overlooked.
Whilst this relief is only available to parties subject to corporation tax, Land Remediation Relief is available to both investors and developers. Land Remediation Relief must be claimed in the annual return relating to the period in which the expenditure was incurred. This generally means you can only look back two to three years, i.e. it is possible to miss the boat!
Expenditure that qualifies for Land Remediation Relief delivers a ‘Super
Deduction’ to the business. The ‘Super Deduction’ against taxable profits
is 150% for investors and 50% (on top of the 100% revenue deduction
already given) for developers. Furthermore, if there are no current profits
to utilise this relief against, it can be cashed-out for a credit payment from the treasury. This can be a significant cash-flow aid when bringing a development to completion.
Great news for businesses!! The Annual Investment Allowance (AIA) will be extended for another year.Historically, the AIA, as many will know, has been quite low in comparison to the £1m limit bought into place on 1st January 2019. This increase, has for many, allowed for rapid growth due to it cancelling out the need for the WDA’s and allowing a much quicker cash tax return on capital investment.The ATT had called for Chancellor Rishi Sunak to extend the AIA in the Autumn budget, which given the current climate would give businesses some much needed breathing space into 2021. With the news that the Autumn budget had been cancelled, this seemed highly unlikely to happen.