Land Remediation Relief

Description

Enhanced Corporation Tax deduction — 150% of qualifying costs — for companies that clean up land or buildings acquired from a third party in a contaminated or long-term derelict state, to encourage brownfield redevelopment over greenfield sites. A 'polluter pays' rule means a company can't claim for contamination it caused itself. Loss-making companies can instead surrender the loss for a cash payable credit worth 16% of the qualifying loss; claim via your Corporation Tax return (CT600) for the period the remediation costs are incurred.

Eligibility summary

• Available across the whole UK (England, Scotland, Wales, and Northern Ireland).
• Applicant must be a registered business.
• Most relevant to: Construction.

Notes

A July 2025 government consultation on reform closed in September 2025; the June 2026 summary of responses confirmed a case for reform (finding LRR is not materially meeting its brownfield objective) and opened a second consultation on specific reform options, running to 21 September 2026. Current 150%/16% rates remain in force in the meantime — watch for changes once this second consultation concludes.

Requirement

Only available to companies within the charge to Corporation Tax (not individuals, partnerships, or trusts); land/buildings must have been acquired from a third party already in a contaminated or long-term derelict state — a 'polluter pays' rule means a company cannot claim for contamination it caused itself.