Tax relief issues

The Finance Act of 2001 introduced Land Remediation Tax Relief.

In general, if asbestos removals are incurred by a UK business which is subject to Corporation Tax, then up to 100% of the ex. VAT cost can be claimed back as a ‘relief’.

If the asbestos removal relates to the need to restore land already in a contaminated condition when it was purchased from some third party, then a further 50% of the ex. VAT cost can be claimed back as a ‘relief’ (ie. then 150% in all).

A smaller tax credit is also available for loss-making businesses (up to 24%).

These Land Remediation Tax Reliefs are not widely publicised.

Please note that businesses which may now wish to claim for earlier expenditure, can only enter retrospective claims for asbestos removal works done within four years of the date of claim.

Please check on your exact entitlement with your accountant.