Land Remediation Relief – Surrey housing development
In 2017 over 1,000 property and land deals completed on sites currently or historically occupied by industrial facilities. At an average price of over £930,000, this represents a significant investment by residential and commercial developers to unlock the UK’s brownfield potential. In many cases these sites require considerable remediation works to bring the land back into use and remove or treat harmful contamination.
One such site that we advised on was originally a gas works until the 1970s, when a manufacturing facility and petrol station were built, both of which were subsequently demolished in 2005. The need for remediation of the site was clear and a report prepared by a specialist contractor identified several issues. Hazardous materials were present such as coal tar, waste fuel and residual oil, in addition to deleterious materials such as asbestos. Furthermore, there was a requirement to remove the underground ruptured petrol tanks and gas holder structures to prevent pollution to local drinking water.
The site remediation project costs totalled over £1.4m, out of which we identified costs qualifying for Land Remediation Relief of £650,000. Land Remediation Relief provides a 150% deduction of qualifying costs against tax. In this case, that meant a total deduction of £975,000 at a tax rate of 19%, resulting in a tax saving of £185,000 if held as a fixed asset or £62,000 for a trading company.
The UK has a long and successful industrial history but many of these sites are now redundant and offer much needed opportunities for urban regeneration and redevelopment. Taking specialist Land Remediation Relief advice at the outset of a brownfield redevelopment will ensure entitlement is retained and the tax relief maximised.
Our advice can help make more sites economically viable and put brownfield land back on the map.
For a free initial consultation, please contact us at firstname.lastname@example.org.
+44 (0) 121 234 0271