Tax relief on asbestos remedial and removal work

Did you know that tax relief is available for asbestos remedial and removal work? If you own or manage a building that needs work to contain asbestos safely or remove it, then there is a financial incentive to help you do it. It comes in the form of a reduction in your corporation tax bill.

This is known as Land Remediation Relief (LRR). We’d be happy to advise you on the eligibility criteria, the specifics of your project, and what to do next.

Who is eligible?

The tax relief is only available to UK-registered businesses as it’s a reduction in corporation tax. It can be claimed by any kind of business or a developer, investor, or property investment trust (with some conditions) but not a pension fund.

You must not have contaminated the land yourself, e.g. if you bought a building or piece of land that was already contaminated, then you should qualify.

An eligible project reduces harm or potential harm. Many asbestos projects would fulfil one of these criteria.

How much is the relief?

You could get 150% relief. That means a reduction equivalent to the tax that you would pay on the cost of the work plus an additional 50%.

The cost of the work that is considered includes professional service fees. That means all of our costs for survey and project management work should be included.

Ultimately, this means that businesses get a 28.5% reduction in the actual project costs.

For developers, the relief is 50% of the same costs. That means developers get a 9.5% reduction in their project costs.

In the case of a loss-making business, tax credits are awarded (at a rate of 16% of the relief amount) rather than a tax reduction, because no tax will be due.

What's the deadline?

You must make your claim within two years of the end of the tax year in which the expenditure was incurred.

Are there any risks?

This is a legitimate tax relief initiated by HMRC. You can see details on the HMRC website

Land remediation project management

With experience in all stages of asbestos remediation and removal, we can provide you with professional oversight of this work. That means ensuring the key decisions about means and methods, safe working, and long-term value are all properly considered and the right result is achieved for your business. We can manage the tender process to appoint specialist contractors for the required work.

Our services include:

Survey of the premises or all affected areas. This is necessary because previous surveys may not have the necessary breadth and depth of coverage. For example, the asbestos could be in an area that is hard to access. Or, if the asbestos is already known and being managed, we need to check its current condition. Either way, you’ll end up with a full picture of the location of asbestos, its type, current condition, and overall level of risk.
Consulting you on the best option, taking into account the level of risk and current and future building use. Drafting specialist specifications for the tender process.
Project managing the remedial or removal works. See full details on our project management
Producing the report that goes with your corporation tax return. We do this in partnership with a specialist accountant who has helped many companies in the same position as you to save significant amounts of tax. We will also work with your own accountant to ensure the approach fits with what they are doing.

All projects that Environmental Inspection provide for a client are tax deductible as long as remedial / removal works are undertaken as part of the LRR application.

Is this only for asbestos?

The tax relief is available for other land remediation work, such as contamination from hydrocarbons (oil) or Knotweed within the grounds of a business. If necessary, we can work with a specialist in this field also.