Remediation of Contaminated Land tax relief is a government incentive designed to help UK companies bring back derelict brownfield sites back into use and remove contaminants from both land and property
Remediation of Contaminated Land tax relief (RoCL) is a government incentive designed to help UK companies bring back derelict brownfield sites back into use and remove contaminants from land and property which has been acquired to uncover their full development potential.
This typically involves the treatment and or removal of contaminants from both land and property to prevent harm to animals, humans and the property itself.
Landowners, property developers, and commercial property owners, including leases granted of at least seven years in length, and those with at least seven years left to run on an assigned lease, may claim this relief.
The relief is for expenditure incurred on removing or treating contaminants in the land or property, or for bringing land that has been derelict for a long time back into use.
Qualifying Remediation of Contaminated Land tax relief activities
- Removal of concrete foundations
- Removal of old structures such as machinery bases
- Removal of old utilities
- Removal of asbestos
- Removal of petrol and diesel tanks
- Removal of Radon gas contamination
- Removal of Arsenic contamination
- Removal of Lead contamination
- Removal of Japanese Knotweed
What qualifies for Remediation of Contaminated Land tax relief
Qualifying costs include staff labour, subcontracted work, and materials. Any costs funded by a grant or subsidy will be deducted from the claim.
The claim can include any material costs that have been directly applied in the remediation work.
For example, this could include concrete barriers used to contain the contaminant in the ground. If any materials or contaminants have been disposed of to landfill, the landfill tax will not be claimable.
Similarly, the hire of plant and machinery is not an allowable expense for this relief.
Capital costs are allowable for relief but affect the adjustments made to claim the relief. In most cases, this will increase the benefit the company can receive.
The tax laws around Remediation of Contaminated Land tax relief are complicated, and the criteria for eligibility can be ambiguous. In order to get the largest tax relief return, you need to have an expert on your side.