Claiming back tax relief for asbestos removal work
Many commercial landlords and property owners are unaware that asbestos removal and associated works on qualifying buildings could mean that they can claim 150% of the cost of asbestos remediation against their company’s profits as tax relief.
This became possible as part of the government’s urban regeneration scheme, under the Finance Act 2001. As an example: if asbestos removal costs £10,000 a company can deduct £15,000 from their taxable income. This also means that if the company made a loss, then they could be eligible for a cash rebate. This concession only applies to UK registered companies and does not apply if the building or land was owned by the company when the asbestos was originally imported.
Part of the professional fees, preliminaries, survey fees and possibly the reinstatement expenditure may also qualify depending on the nature of the project. An investor or owner-occupier would receive the relief in the year of expenditure; a developer would receive the relief on the sale of an asset. This tax relief initiative may improve your options when considering what course of action to take when dealing with remediation of asbestos in a property. It could have a significant financial impact for both property owners and developers.
It is necessary to comply with legislation and you may need assistance in determining which costs qualify for the relief. Eurosafe Plus can provide this professional advice, assistance and even assist with the preparation of the claim in conjunction with your own finance team. If the removal works have been through Eurosafe Plus, then our systems will have automatically held the information needed. We will also have all of the legally required documentation to support the claims.
For more information about this valuable tax relief, please speak with one of our experienced staff who will be delighted to hear from you.