Asbestos Tax Relief
Posted on 14th August 2024 at 13:26
Asbestos relief, also known as Land Remediation Relief, is a tax incentive in the UK designed to encourage businesses to remove asbestos from buildings and land.
Asbestos is a hazardous material that was widely used in construction for its fire-resistant properties until its dangers to human health were fully recognised. Exposure to asbestos fibres can cause serious illnesses, including asbestosis, lung cancer, and mesothelioma.
Aim of the Relief
The relief aims to reduce the financial burden on businesses that need to deal with asbestos contamination, making it more economically feasible to remove this dangerous material and redevelop affected properties.
Eligibility
Companies that incur costs for the removal of asbestos as part of land remediation activities may be eligible for this relief.
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. There is, however, no relief if the remediation work is not carried out.
The relief is available for both capital and revenue expenditure related to asbestos removal.
Tax Benefits
Qualifying expenditure on asbestos removal can benefit from an enhanced deduction of 150% for corporation tax purposes. This means for every £1,000 spent on asbestos removal, a company can deduct £1,500 from its taxable profits.
Alternatively, companies can claim a payable tax credit if they are loss-making, which provides a cash benefit.
Conclusion
If you must remove asbestos as part of a property renovation or project and think you may be able to benefit from this relief, please let us know and we can discuss the next steps.
Share this post: