HMRC internal manual

Corporate Intangibles Research and Development Manual

Land Remediation Relief: Tax Credit: Qualifying land remediation loss - example

You should check the other guidance available on GOV.UK from HMRC as Brexit updates to those pages are being prioritised before manuals.

This example should be read together with the guidance at CIRD68005 and CIRD68015.


A Ltd is carrying on a trade and incurs qualifying land remediation expenditure of £50,000 in an accounting period. The expenditure is an allowable deduction in computing its trading loss for CT purposes. In addition A Ltd claims land remediation relief of £25,000 in respect of the expenditure.

After taking other expenses into account, A Ltd has an overall trading loss for the accounting period of £80,000. The company has other income of £10,000 in the accounting period.

A Ltd makes a claim to surrender the full amount of its qualifying land remediation loss in exchange for a payment of land remediation tax credit, but makes no other loss relief or group relief claims for the period:

* 150% of the qualifying land remediation expenditure is £75,000 (£50,000 x 150%).
* A Ltd’s unrelieved trading loss for the accounting period is £70,000 (£80,000 less £10,000).
* A Ltd’s qualifying land remediation loss is the lesser of these two amounts, i.e. £70,000.
* The tax credit payable is £11,200 (£70,000 x 16% see CIRD68015).
* The trading loss A Ltd is able to carry forward to future accounting periods is £10,000 (£80,000 less £70,000).