Asbestos and Land Remediation Relief


Asbestos can be found in any building built before the year 2000 (houses, factories, offices, schools, hospitals etc) and causes around 5000 deaths every year. – HSE website 

Asbestos still kills around 5,000 workers each year, which is more than the number of people killed on the road and of which around 20 tradesman die each week as a result of past exposure. However, asbestos is not just a problem of the past. It can be present today in any building built or refurbished before the year 2,000. 

It is so deadly because fibres are released into the air when it is disturbed or damaged that can be inhaled and cause serious diseases. These diseases may not affect you immediately; they often take a long time to develop, but once diagnosed, it is often too late to do anything. This is why it is important to deal with asbestos immediately. 

Due to the risk to life and the expertise required to identify and remove asbestos it is an expensive material to have around and usually more expensive to get rid of. The fire-proof, insulating, and durability of the material was a wonder of its time and therefore widely used throughout industry, as a whole. Unfortunately, the dangers of the material were unknown for some time and it took even longer to legislate against its use. 

Now the risks of the material are well known, it is a requirement of the owners of property to ensure it is identified and managed or removed. The HSE website has everything you need to know about your responsibilities in relation to asbestos, its management or removal. 

What is less known is that there is a tax incentive available for those Limited companies that have asbestos removed. Nestled within the Corporate Intangibles Research and Development (CIRD) Manual, there is a section dedicated to Land Remediation Relief (LRR) where it provides a deduction of 100%, plus an additional deduction of 50%, for qualifying expenditure. The expenditure must be incurred in remediating land in a contaminated state as a result of industrial activity, which is or could cause a significant adverse impact on the health of humans or animals or damage to buildings. 

Asbestos falls under the requirements of the CIRD manual as causing relevant harm and therefore some or all of the costs associated with the proper identification, removal and disposal of this material will qualify for Land Remediation Relief. 

The only way to confirm definitively if a suspect material does contain asbestos fibres is to analyse a representative sample of that material. Analysis of asbestos samples is a skilled and specialist task and trained and competent analysts in analytical laboratories must be used. Anyone commissioning analysis by an analyst/laboratory must ensure they are accredited to International Standard ISO/IEC 17025. (Control of Asbestos Regulations 2012). In GB the only such accreditation recognised by the HSE is that provided by the United Kingdom Accreditation Service (UKAS).”  – HSE website 

Once the asbestos type has been identified and a suitable methodology for removal of the material is in place, it requires disposing of in an appropriate facility. Once this process has been completed with the necessary paperwork signed off the costs associated can be calculated and the relevant elections made to claim LRR. 

LRR is available for both capital and revenue expenditure, however the company must elect within two years, to treat capital expenditure as a deduction in computing taxable profits. A company that makes a loss can surrender that part of the loss attributable to LRR for a case payment (Tax Credit). 

For further information in relation to Asbestos in property and Land Remediation Relief, please contact Iain Stamp on 01889 740 405.