Tax Incentives for Land Remediation
While Land Remediation Relief is well known across the UK industry, few companies are claiming further tax relief under the R&D tax credit scheme. With new techniques and technical adaptations being invested in to help with land remediation efforts, companies could be missing out on the full amount of tax credits they’re owed.
Claiming R&D Tax Relief in Relation to Contaminated Land
In recent years, environmental concerns have arisen around the clearance of contaminated land. Companies are therefore beginning to engage specialist chemists, either as employees, subcontractors or in joint ventures, to develop innovative ways in which to resolve land contamination disposal issues.
The use of new techniques, or the adaptation of existing ones, is an activity that potentially qualifies companies for R&D tax relief. This may involve neutralising contamination in a suitable manner, which could require research into the present substances, soil types and nearby waterways, as well as the development and testing of solutions. In such cases, the company carrying out the work is not required to own or have a licence over the land involved; the official line on www.gov.uk states that R&D relief can be claimed as long as the project “seeks to achieve an advance in overall knowledge or capability in a field of science or technology through the resolution of scientific or technological uncertainty – and not simply an advance in its own state of knowledge or capability.”
Benefits of Undertaking R&D Activity for Land Remediation
There are several benefits – both commercially and environmentally – to undertaking R&D activity in order to complete a project involving land remediation. It must be noted, however, that in order to qualify for R&D tax relief, the research must be able to benefit the wider industry, not just the individual company.
- R&D tax relief credits are available on qualifying project expenditure – up to 33.5% for SMEs and 8.8% for larger companies. This includes employee costs, expenditure on software and materials, and the cost of subcontracted R&D activities.
- Companies can become more competitive in their field by finding advancements which will position them as leaders in their industry and meet the ever-changing needs of their customers.
- The advancements can push the boundaries of innovation to create new products, services and processes which enhance efficiency, lower costs and save time, creating cost-effective results.
- Industry standards will be raised by demanding constant research and development in this vital area.
- Land remediation companies can create a positive business cycle by reinvesting the tax credits in further R&D projects.
For further information, businesses can consult the HMRC’s detailed guide on when and how R&D can be claimed.
Land Remediation Relief HMRC Help
R&D Tax Solutions in Manchester specialises in helping businesses make successful R&D claims. This includes R&D tax credit support for projects involving land remediation, saving you time and costly mistakes for incorrectly submitted claims. Our flexible services mean we can work alongside your existing accounting support by providing specialist advice in this area.