Asbestos Tax Relief
As part of the governments commitment to urban regeneration it introduced 150% tax relief for businesses incurring expenditure on land remediation.
Land Remediation Relief is a relief from corporation tax only. It provides a deduction of 100%, plus an additional deduction of 50%, for qualifying expenditure incurred by companies in cleaning up land acquired from a third party in a contaminated state.
Qualifying expenditure includes the cost of establishing the level of contamination, removing the contamination or containing it so that the possibility of relevant harm is removed.
Requirements to make a claim:
- Your company should be registered in the UK.
- You must be a corporation tax payer.
- The asbestos must have been present in the building before you bought it.
Tax relief is not applicable if:
- You are a sole trader, partnership, trustee or individual.
- The cost can be accommodated by capital allowances, e.g. a panel replacement that can count as maintenance.
- On roof, wall cladding and other asbestos cement products in
environmental preservation areas.
Land Remediation Relief is available for both capital and revenue expenditure. However, the company must elect, within two years of the end of the accounting period in which the expenditure is incurred, to treat qualifying capital expenditure as a deduction in computing taxable profits.
A company that makes a loss can surrender that part of the loss that is attributable to Land Remediation Relief in return for a cash payment (a tax credit) from the Government. A claim for a Land Remediation Tax Credit must be made in a CT self-assessment or amended self-assessment.
To check whether you are eligible, talk to Asbestos Fighters and consult your accountant or tax advisor.
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