Owners and developers who are incurring costs to clear contamination from land including Asbestos, Breakout, Arsenic, and Knotweed are eligible for an additional tax upfit of 50% relief which can be converted into a tax credit.
For the purposes of this tax relief it is where the land contains substances such as asbestos, Japanese Knotweed or sulphate resistant concrete which are causing harm or could possible cause harm, pollute or possibly pollute controlled waters.
What are contaminated land costs?
If you have incurred the costs, ‘preventing, minimising, remedying or mitigating any harm or pollution of land or controlled waters, by reason of which the land is in a contaminated state, or restoring the land or controlled waters to their former state’.
What is the benefit?
It entitles a company to claim an additional 50% for qualifying remediation expenditure as a trading expense, in the same year as the remediation expenditure.
How do I claim and is there a time limit?
For expenditure made on capital account you need to elect within 2 years of the accounts year end in which the expenditure was made. For property developers the remediation expenditure is on trading account and it is possible to look back and claim up to 4 years after the accounts year end of the qualifying expenditure.