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Markel Tax

13 Feb 2019

Land remediation

Question: My client has incurred expenditure for clearing a derelict former industrial site. Is there any tax relief available for these costs?

Answer: Land remediation relief may be claimed on qualifying costs relating to the removal of hazardous materials or substances arising from former industrial usage. The scheme is otherwise commonly referred to as contaminated land relief, and may be claimable where the purchaser of land incurs expenditure in removing industrial materials in order to bring the land safely into commercial usage once again.

Qualifying costs include, but are not restricted to, expenditure relating to the removal of asbestos, knotweed, or other contaminants such as petrol and diesel. From this, claims allow an additional 50% relief on qualifying expenditure. Other, less obvious, costs may be eligible if connected to the removal of such substances. Claims can be made by companies, but not partnerships or sole traders. Claims cannot be made if the contamination was caused by activities undertaken by the claimant company itself.

Here to help: With more than 60 highly skilled tax and funding specialists, advising on over 2,000 complex tax issues each year, we work with your practice to provide up to date, practical solutions. If you have a client in a similar situation, or have a tax question of your own, we're here to help on 0345 223 2727. Or to find out more about our services, email taxmarketinguk@markel.com.
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