Commercial & Industrial Asbestos Roof Repair

 

Before you plan on doing anything with the asbestos roof on your building, talk to us about the tax break you could benefit from if you repaired and coated your roof. As you are managing and restoring contaminated land, you could benefit from 150% tax relief from pre-tax profits. Please contact us if you require any more information on this scheme.

 
Land Remediation Relief
 

Land Remediation Relief is a corporation tax relief. It is available where companies acquire land in a contaminated or derelict condition.

Land Remediation Relief was introduced in 2001 to address market failure, in bringing back into use, land that had been blighted by previous use for industrial purposes.

 

The relief applies to both capital and revenue expenditure.

It applies for qualifying expenditure incurred on or after 1 April 2009.

Land Remediation Relief is a relief from corporation tax only. It provides a deduction of 100%, plus an additional deduction of 50%, for qualifying expenditure incurred by companies in bringing long-term derelict or contaminated land back into use.

 

So for every £1000 paid on repairing & coating your asbestos roof, you can claim £1500 deduction from your corporation tax bill.

Asbestos is a land contaminant, so will fall under the following statement

Land Remediation Relief is a relief from corporation tax only. It provides a deduction of 100%, plus an additional deduction of 50%, for qualifying expenditure incurred by companies in cleaning up land acquired from a third party in a contaminated state.

 

Land or buildings are in a contaminated state if there is contamination present as a result of industrial activity such that:

  • it is causing relevant harm; or

  • there is a serious possibility that it could cause relevant harm, or

  • it is causing, or there is a serious possibility that it could cause, significant pollution in the groundwater, streams, rivers or coastal water

 

Here is an example of a qualifying case;

A Ltd acquires, from an unconnected third party, offices with asbestos roof sheets. They are advised that the panels have not been maintained in accordance with the guidelines and that the panels are now in a state that requires removal or repair

Although the building has not been used for an industrial activity, the asbestos is present as a result of industrial activity (the construction industry). A Ltd is not the polluter and acquired the property in a contaminated state. A Ltd can claim Land Remediation Relief on the additional costs incurred in repairing the asbestos roof.

 

To qualify for the scheme the following must be true

  • You purchased the building with the asbestos roof already installed.

  • If you rent the building, you have at least 2 years left on your lease from the date on completion of the asbestos roofing works.

  • You are a company registered in the UK

 

For more information on the LRR scheme, please visit the following link or speak to your company accountant.  

https://www.gov.uk/hmrc-internal-manuals/corporate-intangibles-research-and-development-manual/cird60005

 

Find us at

Roves Farm Cottage

Sevenhampton

Swindon

SN6 7QG

UK

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