Land Remediation Tax Relief

The Government has suggested replacing Landfill Tax Exemption regulations with Land Remediation Tax Relief (LRTR). The LRTR regulations were first introduced under the Finance Act 2001 for companies involved in the remediation of contaminated land – whether for commercial or residential purposes.

Previously Japanese Knotweed (JK) has not been included within the LRTR qualifying criteria – the stated reason being that JK was not classified as a ‘substance’ with the capability to… ‘harm, or potential to cause harm’.

Even with the obvious connection between tax legislation designed to help remediate problem sites and Japanese Knotweed treatment – Her Majesty’s Revenue and Customs has been resistant to accepting that treatment and removal of Japanese Knotweed should be eligible for LRTR.

The Future

We expect that JK will become eligible for Land Remediation Tax Relief following the budget in March. If it becomes Law then it is likely that LRTR will be available at 50% for developers (ie those trading in property) whilst property investors or owner occupiers can benefit from 150% relief against their qualifying expenditure. Typically, it will be down to each company’s accounts department to negotiate a claim.

JKSL will assist in ensuring all of our relevant documentation is in place to support your claim and provide every assistance possible.

Check back here for an update on the situation following the budget announcements.