Land remediation myths cleared up at conference

New light was cast on poorly understood provisions of Land Remediation Tax Relief (LRTR) at a major national conference, thanks to E³ Consulting.

LRTR is often overlooked and underclaimed by developers and owners – costing them money!

E³ Managing Director, Alun Oliver FRICS, uncovered the finer details of LRTR in an update for the Royal Institution of Chartered Surveyors’ (RICS) 2021 Minerals and Waste Management Conference.

He gave real-life examples of how E³ had helped clients make tax savings of sums ranging from £10,000 and £11,000 to more than £200,000.

Alun’s presentation at the virtual two-day conference covered:

• Contaminated land and legislative deals
• Long term derelict land
• Calculations and value
• Contaminants and case studies

Alun set out the criteria for LRTR as well as examples for 150 per cent relief on Qualifying Land Remediation Expenditure (QLRE) for owners/investors and of 50 per cent of QLRE for developers.

He also dug deep into the various types of contamination, including Japanese Knotweed, Radon, Asbestos and hydrocarbons.

Alun gave an example where E³ had found tax savings for clients, including £10,000 on £30,000 of qualifying expenditure for a small private office development in Swansea on a site afflicted with Japanese Knotweed.

Another example was more than £200,000 of tax savings on £1.45m of qualifying expenditure on a medical facility on a former scrap yard and mill site in the Midlands with Japanese Knotweed and contaminated soil.

Other examples included a residential development in Dorset on a former factory site (£11,000 tax saving), a business park in Lancashire on a former colliery (£30,000 tax saving) and regeneration of a hotel in Dorset (£50,000 tax saving).

Alun said: “LRTR is often poorly understood by non-specialists and often underclaimed (or completely overlooked) by developers and owners.

“It was pleasure to speak at the RICS conference to help clarify how LRTR can save money on project costs and help unlock previously unviable brownfield sites.

“In turn, this can revitalise communities and local economies while helping to ease the pressure on greenfield land for development.”

He added: “It is important to understand the finer details of LRTR as it can be restrictive and covers multiple disciplines, including the environment, tax and law.

“It offers great potential for tax savings but it is time sensitive and is policed vigorously by HM Revenue & Customs so it is vital to take the right advice as early as possible.”

Surveyors, developers and professionals from construction and property related sectors were those attending the RICS conference.

You can contact E³ Consulting for advice about Land Remediation Tax Relief (or other property tax matters) by calling on 0345 230 6450 or emailing enquiries@e3consulting.co.uk or keep track of their insights on property tax matters via Twitter @E3consulting.