Land Remediation
A key part of the Government’s urban regeneration strategy is the redevelopment of brown field sites. In 2001 a 150% tax credit was introduced for companies incurring expenditure on land remediation. Budget 2009 saw the first update of the legislation which also introduced additional relief for long-term derelict sites.
As with many forms of tax relief, there are conditions that have to be met and technicalities to overcome before the benefit can be realised.
The main problems facing taxpayers include defining the extent of eligible expenditure and, in particular, the interaction with substructure solutions and normal site preparation costs. Another frequently asked question is whether or not replacement materials qualify: the answer is dependent on the nature of the development. The benefits are nevertheless significant enough to make dealing with these issues worthwhile. At a 28% corporation tax rate, developers will recover 14% of their qualifying land remediation expenditure, whilst investors and occupiers may recover up to 42%.
For more information please refer to the sections below or contact David McCreadie.