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Remediation of Contaminated Land Tax Relief Calculator
Remediation of Contaminated Land (RoCL) can provide tax relief in all commercial property sectors where companies are subject to corporation tax.
The calculation is complicated, however please see a few examples of how we would calculate this tax relief below:
Example 1
Profitable Company, costs expensed through Profit & Loss account
- • Company has taxable profit, pre RoCL claim £100,000
- • At 19% tax that’s a tax liability of £19,000
- • Company has incurred qualifying RoCL costs of £10,000
- • These costs expensed (so tax relief already obtained worth £1,900)
- • A RoCL claim will reduce the profits by a further £5,000 (50% of £10,000)
- • A further £950 saved at 19%
- • New tax liability £18,050
- • Total tax saved on costs £2,850 (£1,900 plus £950)
- • This equates to £10,000 x 150% x 19%
Example 2
Profitable Company, costs capitalised on Balance Sheet
- • Company has taxable profit, pre RoCL claim £110,000
- • At 19% tax that’s a tax liability of £20,900
- • Company has incurred qualifying RoCL costs of £10,000
- • These costs capitalised and no capital allowances claimed (so nil tax relief so far)
- • A RoCL claim will reduce the profits by a further £15,000 (150% of £10,000)
- • £2,850 saved at 19% • New tax liability £18,050
- • Total tax saved on costs £2,850
- • In other words end up in an identical tax position to Example 1