Tax Relief on Clearance of Contaminated Land

Posted on: 16/07/2019

Property developers and other companies may be missing out from a little-claimed corporation tax relief available on the clearing of former industrial land.

Since 2001, relief has been available for companies incurring expenditure on the removal of certain harmful substances in order to bring the property back into use. This includes asbestos and other chemicals arising from previous industrial use of the land or property, as well as costs of removing Japanese knotweed.

To be eligible, the claimant must be a company liable to UK corporation tax that has incurred expenditure on the removal of such contaminants. The pollution cannot have been caused by the company’s own actions. The company does not need to intend to use the land for their own business activities: property developers looking to build homes on the land can also claim.

Enhanced tax relief of 50% is available on the costs of surveying, removing these contaminants, and backfilling any land on completion of the removal, equating to a tax saving of approximately 10% of the costs expensed.

Companies have two years from the end of the accounting period in which the expenditure is incurred to make a claim. To make sure you don’t miss out contact us today for a free no-obligation eligibility check.