Calculate Land Remediation Relief for UK companies cleaning up contaminated or derelict land. Find your enhanced 150% deduction and tax saving.
Land Remediation Relief (LRR) is a UK corporation tax relief that allows companies to deduct 150% of qualifying costs for cleaning up contaminated or derelict land. This means for every £100 spent on qualifying remediation work, the company can deduct £150 from its taxable profits, saving up to £37.50 in corporation tax at the 25% main rate.
Qualifying costs include: the cost of removing contaminated materials (asbestos, chemicals, Japanese knotweed), treating polluted land, removing derelict structures, and associated professional fees. The land must have been contaminated by a third party (not the claimant) or be in a derelict state. Residential developers cannot use LRR — it is for UK-resident companies only.
Yes — if the enhanced deduction creates or increases a trading loss, a loss-making company can surrender the loss for a payable tax credit of 16% of the surrendered loss. This provides cash flow support for companies undertaking large remediation projects that are not yet profitable.
Yes — the cost of removing Japanese knotweed is a qualifying expenditure for LRR, as it is treated as a contaminant under the legislation. Japanese knotweed removal can be very expensive (£5,000–£30,000+ per site), so the 150% deduction provides significant tax savings for developers buying affected brownfield land.
LRR is claimed on the company tax return (CT600) by entering the qualifying expenditure and the enhanced deduction amount. A supporting claim must identify the contaminated land, detail the qualifying expenditure, and confirm the contamination was not caused by the claimant. HMRC may request supporting documentation including site surveys and remediation contracts.