The advantages of R&D tax relief for land remediation
Introduced in 2001, Land Remediation Tax Relief (LRTR) was set up to encourage developers and investors to regenerate contaminated sites. Almost 20 years on, companies continue to acquire such land, meaning that work is ongoing to discover new and better ways of remediating it. Specialist chemists are employed and new techniques trialled to neutralise contamination.
Many organisations, however, are not taking full advantage of the R&D tax credits that are available to them. Relief is available on both commercial and residential developments, and can represent a significant financial recovery for companies researching and testing innovative land regeneration techniques.
Claiming R&D tax credits for land regeneration
Companies that are finding new ways to remediate land can potentially qualify for research and development tax credits. Hiring scientists or other specialists to analyse the substances that are present, research the land itself, and develop solutions that safely and effectively neutralise the contamination requires significant expenditure, which the government wants to reward.
According to HMRC, R&D tax relief is available to those seeking to “achieve an advance in overall knowledge or capability in a field of science or technology”, which in many cases applies to the above activities. As long as the company carrying out the work is seeking solutions that could benefit others looking to regenerate land, R&D tax credits are available.
What R&D tax credits can offer your business
Of course, land regeneration has its own benefits – neutralising chemicals, re-using cleared land for long term development, creating jobs and a safer environment. The government recognises this and the rewards for companies trying to remediate land are therefore generous.
R&D tax creditsoffer SMEs up to 33.5% relief on qualifying project expendituresuch as employee or sub-contractor costs, software and material costs, and expenditure on utilities. Larger companies can claim 8.8% on their expenditure.
For the purposes of the relief, an SME is a business with fewer than 500 employees and an annual turnover of less than €100 million. As such, many companies qualify for the higher rate of relief.
R&D tax credits mean that UK companies engaging in land regeneration have the resources to continue developing better ways to neutralise contamination, make advancements in their field, and meet the needs of their customers.
Help with R&D tax claims for land regeneration
R&D Tax Solutions in Manchester specialises in helping businesses involved in land remediation projects make successful R&D claims. If you carry out innovative research and development work, our experienced team can identify if you have a successful claim for tax credits.
We can also help you calculate what you’re owed and prepare the supporting documentation required by HMRC. Our flexible services mean we can work alongside your existing accounts team to ensure you receive the relief you’re owed. To find out more, contact us today on 0161 298 1010 or email office@rndtax.co.uk.
