Land Remediation Relief: what should you review before your December year end?

If your business develops property, owns land or undertakes major site redevelopment, Land Remediation Relief could provide Corporation Tax relief for certain costs associated with bringing contaminated or derelict land back into productive use.

For businesses with a 31 December year end, there are two areas to check before the end of 2026: whether qualifying expenditure from 2024 still needs to be claimed, and whether remediation costs incurred during 2026 are being properly identified and recorded.

1 | Have you reviewed your 2024 remediation expenditure?

If your business incurred qualifying remediation expenditure during the year ended 31 December 2024, you may need to act before 31 December 2026.

Land Remediation Relief claims generally follow Corporation Tax self-assessment time limits and can be made through your original or an amended Company Tax Return.

There are also specific rules for capital expenditure. If you want qualifying capital expenditure to be treated as deductible for Land Remediation Relief purposes, you must make the relevant election within two years of the end of the accounting period in which the expenditure was incurred.

For a 31 December 2024 year end, that could make 31 December 2026 an important deadline.

If you undertook remediation work during 2024 but did not consider Land Remediation Relief at the time, check whether the expenditure could qualify before the relevant claim or election window closes.

2 | What remediation work have you undertaken during 2026?

If you have an active development or redevelopment project, review the remediation work undertaken during the year rather than waiting until the project is complete.

Before your December year end, check:

»   what brownfield, contaminated or derelict land projects you have undertaken during 2026;
»  what remediation work has been carried out;
»  whether potentially qualifying costs have been identified separately;
»  whether the expenditure has been treated as revenue or capital;
»  whether any elections may be required;
»  whether previous projects have ever been reviewed for Land Remediation Relief.

The accounting treatment of your expenditure can affect when relief is available, so identifying the costs correctly as the project progresses can make it easier to assess your position later.

3 | Could qualifying costs be sitting within a wider development project?

Remediation expenditure can form part of a much larger property or construction project, which means potentially qualifying costs may not always be considered separately.

If your business has acquired or developed land affected by contamination or dereliction, it is useful to check whether the costs of dealing with those issues have been identified and reviewed specifically for Land Remediation Relief.

This can apply to property developers, housebuilders, construction groups, landowners and other businesses undertaking major site redevelopment.

→  Your December year end gives you a clear point to review both current and previous projects: check whether 2024 expenditure needs action before 31 December 2026, and make sure qualifying costs arising during 2026 are being captured correctly.

If you have any questions about whether your remediation expenditure could qualify for Land Remediation Relief, whether a previous project may still be eligible for a claim, or the deadlines that apply to your business, get in touch with the ABGi team and we will be happy to help. If you are unsure whether your 2024 remediation expenditure qualify, the ABGi team can conduct a complimentary pre-screening review before the December deadline closes.