Remediation of Contaminated Land – Catax’s New Service
As a result of making successful claims for this tax relief in the past, despite not advertising it as a service as such, Catax has decided to make it public knowledge that we now offer this service to companies to claim extra relief on costs for contaminated and derelict land.
As with the other services we offer, this relief will be vastly under claimed with around 1,300 claims made in 18/19.
So what is it, and how does it work?
This is a relief that is only available to companies and works in a similar way to R&D tax relief in that there is an uplift of qualifying costs and the availability to surrender a loss for cash back from HMRC.
The accounting treatment of the costs will dictate how much relief can be claimed but, ultimately, 150% is tax deductible been the original 100% spend together with an extra 50%.
Qualifying costs include staff costs, materials and subcontracted costs.
It applies to land and property owners, or leaseholders with at least seven years of a lease left to run who spend money removing or treating contaminants that they never put there in the first instance such as asbestos, radon and Japanese Knotweed. It also applies to costs incurred in bringing derelict land back into use where the land has been derelict from the earlier of 1 April 1998 and the date of acquisition.
We will help clients collate costs and summarise the details of the qualifying activity before making a claim to HMRC in order to reduce the company’s tax bill or help it receive tax back or a cash credit for loss-making entities. As with all our services, our offering is risk-free as our fees will be contingent and in proportion to the size of the claim.
So if you have spent money on something that may fit this situation in the last few years or you know a company that has, please get in touch.
0300 303 1903