Is Asbestos Removal A Capital Improvement In Sussex?

Asbestos is a hazardous material that was widely used in buildings and construction projects in the past. If left undisturbed, asbestos is relatively harmless. However, if asbestos-containing materials (ACMs) are disturbed, they can release toxic particles into the air, posing serious health risks to those exposed. As a result, it is necessary to remove asbestos from buildings and sites where it is present.

This raises the question: is asbestos removal a capital improvement in Sussex? The answer to this question has important implications for property owners, developers, and investors in the region. In this article, we will explore the criteria for asbestos removal to be considered a capital improvement and the tax relief available to those who incur such expenditures.

Affordable Asbestos Removal Sussex

Affordable Asbestos Removal Sussex are a leading asbestos removal company in Sussex. We provide high-quality asbestos removal services to domestic and commercial clients across the region. Our experienced team of professionals uses the latest techniques and equipment to ensure safe and effective asbestos removal.

Asbestos removal is a complex process that requires specialised knowledge and expertise. Our team is trained and certified to carry out all types of asbestos removal work, including surveying, testing, and removal. We work to the highest safety standards and comply with all relevant regulations and guidelines.

Use of Sites

Asbestos was widely used in the construction of buildings and infrastructure across the UK, including Sussex. Many buildings and sites that were constructed before the 1990s may contain asbestos. Consequently, the removal of asbestos is a common requirement for sites that are being redeveloped or repurposed. Asbestos removal is essential for ensuring the safety of workers, occupants, and the public.

Derelict Land

Derelict land is a type of brownfield site where economic development is hindered by the presence or potential presence of contamination. Asbestos is a common contaminant found on derelict land, and its removal is often required as part of site remediation.

Asbestos removal from derelict land is considered a capital improvement if the site is being redeveloped for commercial use. This is because the removal of asbestos enables the redevelopment of the site, and the expenditure is incurred for the purpose of enhancing the value of the property.

Relief for Sites That Must Be Brought Into Use

If a site is derelict or contaminated with asbestos, it may need to be brought into use to restore its economic potential. Asbestos removal is often a necessary step in the process of bringing contaminated sites into use. Such expenditures can qualify for tax relief under the Land Remediation Relief (LRR) scheme.

LRR is a tax relief that is available to businesses that incur qualifying expenditure on land remediation. Asbestos removal is considered a qualifying expenditure under LRR if it is incurred for the purpose of bringing a contaminated site back into use for commercial purposes.

Sites Brought Into Use Through Site Redevelopment

Site redevelopment is a common reason for asbestos removal. The removal of asbestos is often necessary to enable site redevelopment, and the expenditure can be considered a capital improvement if the site is redeveloped for commercial use. This is because the expenditure is incurred for the purpose of enhancing the value of the property.

Qualifying Expenditure Incurred Within One Year

To qualify for LRR, expenditure must be incurred within one year of the site being brought into use for a qualifying purpose. Asbestos removal that is incurred after one year will not qualify for LRR.

Relief Claimed for Two Accounting Periods

LRR relief can be claimed for the accounting period in which the expenditure is incurred and for the following accounting period. This means that businesses can claim LRR relief for asbestos removal expenses in two consecutive accounting periods.

Retail Portfolio Property Held Within Expenditure

LRR is available for retail portfolio property held within expenditure. This means that businesses can claim LRR for asbestos removal expenses incurred for the purpose of enabling the redevelopment of retail property.

Tax Relief Available

LRR relief is available to all types of businesses, including property developers and investors, who incur qualifying expenditure on land remediation. The relief is available in the form of a credit against corporation tax or income tax. The amount of relief depends on the amount of qualifying expenditure incurred.

South East England

Sussex is located in the South East of England, a region that is home to many brownfield sites and derelict land. Asbestos removal is a common requirement for redeveloping these sites, and qualifying expenditures can be claimed for LRR relief.

Conclusion

In summary, asbestos removal can be considered a capital improvement in Sussex if it is incurred for the purpose of enhancing the value of the property or bringing a contaminated site back into use for commercial purposes. Asbestos removal expenses that are incurred within one year of the site being brought into use for a qualifying purpose can qualify for LRR relief. If you require asbestos removal services in Sussex, contact Affordable Asbestos Removal Sussex today on 01273 978238 or at [email protected].