Big Tax Relief for dealing with asbestos or other hazards
Whether you’re a developer or company investing in your property, there is tax relief available for dealing with hazardous land or buildings.
Does your project involve dealing with:
- Asbestos
- Radon Gas
- Old petrol filling stations
- Japanese knotweed
- Mineshafts
- Unstable ground
- Derelict buildings
- Or some other hazard?
Important news! There is generous tax relief available:
Land Remediation Relief – and it’s even available as a cash tax credit.
In other words, you don’t need to be profitable to utilise the relief.
Profitable companies will see immediate reduction in their tax bill of 37.5p on the £1 and loss-making companies can obtain a tax credit at 24p per £1 spent on qualifying land remediation.
The facts:
- Companies Only
- Must not have originally caused the hazard (i.e. built the asbestos property)
- 150% of capital spend incurred available as an allowance
- 16% tax credit available on that amount for loss making companies
- For developers the deduction is a bonus 50% on top the amounts allowable through cost of sales
- 2 year time limit (4 years for developers)
For example
A company purchases an office to renovate. They find asbestos in the property and spend £100,000 on its safe removal.
They receive Land Remediation Relief of £150,000, equivalent to tax savings of £37,500 at 25% corporation tax rate. Alternatively, they can claim a cash tax credit of £24,000 instead.
How we can help
- Determine entitlement for a company to claim
- Identify the expenditure eligible for relief, including capturing ancillary spend in the form of surveys and apportionable fees
- Prepare the claim with a detailed report, to provide full disclosure for submission to HMRC
Contact us:
If you’ve undertaken remediation, get in touch now for a free, no commitment consultation:
t: 0114 553 7850