Can You Claim Land Remediation Relief for Asbestos Removal?

Land Remediation Relief for asbestos, also known as asbestos removal relief, is a Corporation Tax incentive that allows companies across the UK to claim a deduction for the qualifying removal, encapsulation, or containment of asbestos, either within buildings or on land. 

If you want to claim Land Remediation Relief for asbestos, follow our guide to find out if you’re eligible and the steps you must take to make a claim. 

What is Land Remediation Relief?

Land Remediation Relief (LRR) is a tax incentive that allows companies across the UK to deduct 150% of qualifying expenditure on cleaning up either contaminated or derelict land, including certain removal costs. 

For example, if a company cleans up asbestos from a site, they can claim tax relief based on 150% of what they actually spent, which can reduce their Corporation Tax bill.

HMRC’s consultation on Land Remediation Relief between July 2025 and 15 September 2025 reveals: 

• There were 1,750 claims for Land Remediation Relief, worth a total of £50 million 
• The median claim amount was £1,700 
• 90% of claims were for less than £35,000 
• Over the past five years, the number of LRR claims has remained consistent 

The LRR scheme is designed to encourage brownfield development, which is the process of transforming abandoned land or property by cleaning up and repurposing it before reuse.

Does Asbestos Removal Qualify for Land Remediation Relief?

Asbestos removal is a common form of contamination that sometimes makes land or buildings unsafe and unsuitable for use. 

The removal process may qualify as remediation work under LRR if:

• The land or building was acquired in a contaminated state 
• The claimant company wasn’t responsible for the asbestos contamination
• The remediation is necessary, as the asbestos poses a potential risk

Despite being banned in 1999, asbestos remains in most properties built or refurbished before 2000. The Health and Safety Executive’s 2025 asbestos-related disease statistics showed that roughly 5,000 deaths were linked to asbestos exposure, including cases of mesothelioma, lung cancer and asbestosis. 

Who is Eligible for Land Remediation Relief for Asbestos Removal?

You may be eligible for LRR for asbestos removal if: 

• You’re a UK-registered company that pays Corporation Tax 
• You own or lease contaminated land or property for a term of at least 7 years
• Your company was not responsible for causing asbestos contamination  
• Your company holds a major interest in the land
• The land or property must have been purchased from a third party 
• The cost must be to cover qualifying remediation

However, you won’t be eligible for LRR for asbestos removal if: 

• You are a sole trader or a partnership
• You caused or permitted the asbestos contamination 
• The expenditure doesn’t qualify as eligible remediation costs in line with HMRC rules

LRR for asbestos removal is only available to UK-registered companies paying Corporation Tax that incur qualifying remediation costs on land or property contaminated by previous use.

Common Qualifying Asbestos Scenarios

Common asbestos scenarios that qualify for LRR typically include: 

• Removing asbestos insulation as part of the remediation of land or property in a contaminated state
• Removing asbestos from structural materials during a refurbishment or redevelopment of a contaminated property
• Removing asbestos from recently acquired buildings where contamination is present from previous use 

How to Claim Land Remediation Relief for Asbestos Removal

If your company wants to claim LRR for asbestos removal, the process involves a few key steps:

1. Check if you’re eligible to claim LRR for asbestos removal using our list above 
2. Confirm asbestos removal qualifies for LRR 
3. Identify qualifying costs (claim 150% tax deduction on qualifying expenditure)
4. Submit your claim within your company’s Corporation Tax Return (CT600)
5. Keep supporting evidence, such as site history, contamination reports, and proof of ownership interest, in case HMRC requires more information
6. Wait for the claim outcome (response time widely varies)

Complete Your Land Remediation Relief Claim 

If you require support for LRR, we can help. At LJS Accounting Services, we work closely with businesses in the UK, assisting them in making a timely LRR claim while filing their company tax return. Our team will remain on hand to guide you through your claim by ensuring your company’s eligibility and answering any important questions you may have. 

To find out more about how we can help you make a claim, contact our helpful LRR accountants today.