Can Asbestos Removal Be Capitalised In Sussex?

Asbestos was once regarded as a man-made marvel due to its versatility, resistance to heat and chemicals, and durability. It was used widely in construction materials, vehicle parts, and consumer goods, among other things. However, it was eventually determined that asbestos exposure could cause lung cancer, mesothelioma, and other serious health concerns. As a result, governments all over the world have outlawed or severely restricted the use of asbestos, and many Western countries have or are in the process of banning it entirely. Despite this, asbestos remains prevalent in older properties, and it will only be a matter of time before all contaminated properties are free from the hazard. We're Affordable Asbestos Removal Sussex, and we can help you remove asbestos from your property before the law mandates it. But, is it beneficial to capitalise on the cost of asbestos removal?

Affordable Asbestos Removal Sussex

We are a top-rated asbestos removal company located in Sussex. We have been in the industry for nearly ten years, and we have the required experience, insurance, and equipment to complete both small and big asbestos removal projects. When it comes to asbestos removal, there is no substitute for expertise and experience. We will evaluate your home or other property, identify the presence of asbestos, and provide you with solutions to remediate the issue while preserving the safety of you, your family, or workers. We understand how frightening it can be to be notified of a serious, life-threatening health threat, but you don't have to worry. We have the necessary contacts to get the right paperwork for you.

Within Sites, It Is Illegal To Use Asbestos

The use of asbestos in construction materials is completely banned in the UK. However, it is still recognized as a significant danger to public health. As a result, property owners are responsible for ensuring that any asbestos present at their location is appropriately handled. The removal of asbestos is unavoidable, but the issue remains: can the costs of asbestos removal be capitalised in Sussex?

When Can A Site's Asbestos Be Capitalised?

The primary requirement for capitalising the expense of asbestos removal is that the expenditure must have been incurred within an accounting period. The accounting period is typically a year, and most businesses utilize Standard Accounting Periods. Any asbestos removal expenditures made during the accounting period can be capitalised and then claimed as a tax deduction. The resulting tax credit can then be used to offset future expenditures incurred after the accounting period. As a result, asbestos removal can be a fantastic way to save money on your taxes while ensuring that your commercial or residential property is safe.

Derelict Sites

In some cases, asbestos removal operations may take place on derelict sites. Derelict sites have specific requirements for capitalizing asbestos removal expenses. For instance, any expenses incurred during the "preparatory" phase before the property is rented or sold may qualify as capital expenditure. Additionally, expenditures that fundamentally improve rather than just maintain the existing premises have to be capitalised as improvements to the property.

Is Asbestos Removal A Relevant Expenditure?

Asbestos removal is an expense that is directly linked to any used or refurbished building. As a result, it qualifies as a relevant expenditure and can be capitalised. The only exception is if the asbestos removal was shown to be a failure, in which case it may be disallowed.

Land Remediation Relief (LRR)

Land Remediation Relief (LRR) is a tax incentive that allows businesses and property owners to claim tax relief when remediating contaminated land. LRR is primarily intended to offset the costs of dealing with contaminated property and land, which might be very costly. The goal is to encourage land redevelopment by removing pollutants, restoring the land to its previous state, and enabling development to proceed. Due to the fact that asbestos is a known pollutant that can be incredibly costly to remediate, LRR might be a critical benefit.

Are Tax Credits Available For Asbestos Removal?

Any capital expenses incurred during an accounting period for site-specific asbestos removal may be claimed as a tax credit. In most circumstances, the maximum tax credit claimable is equal to the total amount of income tax paid by the corporation for the accounting period. However, there are a few constraints on the amount of tax savings that may be claimed.

If the capital expenditure is less than 50,000, for example, the expected cost savings will be equal to 19% of the amount spent. Additionally, businesses and people eligible for capital allowances may profit from the removal of asbestos.

Quick Guide Walks You Through The Saving

Assuming your company has a profit of 16,000 and spends 40,000 on asbestos removal during an accounting period. You can claim these expenditures as a tax deduction, reducing the accounting profit to 24,000, resulting in a tax credit of 4,560. You save 4,560 on your taxes while ensuring the safety of your commercial or residential property. However, the capital expenditure can be quite different from that, and therefore these figures change based on individual cases.

Is The Property Being Held For Redevelopment?

For the purpose of claiming property-related capital allowances, the most critical aspect to consider is whether the property is being held for "use in a trade." If the property is being used for any commercial purpose other than as a private residence, capital allowances may be claimed.

Relief For Developers Alike

If property developers acquire or renovate commercial land contaminated by asbestos, they may be eligible for Land Remediation Relief tax savings equal to 150% of the actual clean-up cost. This might end up saving millions of euros.

Commercial Capital In Sussex And The South East

Commercial properties in Sussex and the South East may reduce their costs of asbestos removal by capitalising the expense. Capital expenditure on asbestos removal is an unavoidable expense, and a tax credit can be claimed if the expense was incurred during an accounting period. Asbestos removal costs may be claimed even if the property was derelict and failed. Land Remediation Relief and capital allowances may result in significant tax deductions in certain cases, making asbestos remediation less expensive.

Contact us

Should you require affordable asbestos removal services in Sussex, contact us at Affordable Asbestos Removal Sussex. We are fully trained and qualified to carry out hazardous material removals. Get in touch with us today to schedule a consultation, and we'll guide you through our asbestos removal process. Call us on 01273 978238 or email us at [email protected]. You may also want to visit our website afford_asbestos_removal_sussex.co.uk for additional information or to fill out an online form so we can get in touch with you.