WHAT THE HECK IS… LRR?

Nov 26, 2021

By Tom Langlands

Marketing Executive, ECON Polyurethanes

No time? No problem! Start using topical industry buzzwords, unlocked for you in less than a minute by ECON. Today we’re answering…

What the Heck is LRR?

LRR stands for Land Remediation Relief. It is also known as Contaminated Land Tax Relief.

How does it work?

The relief allows eligible UK businesses to claim 150% of the cost of cleaning up a site against their Corporation Tax bill.

When did LRR get introduced?

2001.  In 2009 the relief was extended to include long-term derelict land. Claims are actively encouraged by HMRC.

What’s the point of LRR?

It’s an incentive to preserve greenbelt land. It’s there to encourage commercial land usage rather than develop greenbelt land.

But I don’t have any land?

This is a common misconception. LRR can be applied for buildings too!

How do I qualify?

The land or building must be owned by a limited company when the remediation work is undertaken with at least a 7-year term remaining.

Is that it?

You also need to confirm potential serious harm to persons and the environment, damage to buildings, or pollution to watercourses would occur without remediation.

Give me an example of what can be claimed for!

The removal or capping/encapsulating of asbestos roofing panels qualifies.

That sounds disruptive

It doesn’t have to be. In addition to benefiting from its superior thermal performance and additional structural strength, Elastospray LWP, BASF’s eco-friendly closed-cell spray foam, is superb at encapsulating asbestos roofs.  Our network of Foam Masters can install an airtight skin, to variable depths, quickly and efficiently with little to no mess.

If I qualify, can I claim retrospectively?

Yes. As long as the expenditure was incurred within two years from the year-end when the remediation expenditure was incurred.

Where can I find more information?

Any good accountant will be able to advise you on LRR and the process involved in applying for it but there’s also information from HMRC here.

If you have any queries about encapsulating asbestos in your building with Elastospray LWP, please get in contact and the team at ECON Polyurethanes will be happy to help.

 

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