Land Remediation Relief - Offshore Property Investors

Land Remediation Relief (LRR) was introduced back on the 11th May 2001 and enables companies which are subject to Corporation Tax to deduct 150% of the qualifying expenditure incurred in the year of expenditure (Investors) or in year of disposal (developers).

Offshore investors incurring asbestos removal, decontamination and preventative expenditure on UK land and buildings were precluded from claiming this enhanced relief because they were taxed under the income tax regime.

From the 6th April 2020 offshore investors will now be included within the UK Corporation Tax regime therefore any qualifying expenditure incurred after this date will attract this enhanced relief.

For each £1m of qualifying expenditure LRR will provide a first year tax saving of £285,000 (based upon a tax rate of 19%). This tax saving will increase to £375,000 from April 2023 if the tax rate is increased to 25%