Taxing isn’t it…
Another Blog of caution I’m afraid…
Certain companies are out and about selling their services on the back of saying that they are able to get 150% of the money spent on Japanese Knotweed removal - back from the Inland Revenue …
Well it’s not quite that easy – but there is some truth in the claim…
In a nutshell –
Providing the relevant conditions are satisfied, the legislation entitles a company carrying on a trade or a property rental business to:
- Claim an additional 50% relief for ‘qualifying land remediation expenditure’ allowed as a deduction in computing its profits;
- Elect that capital expenditure on ‘qualifying land remediation expenditure’ is allowed as a deduction in computing its profits.
This is NOT available to individuals or partnerships – only companies.
Land remediation tax relief (LRTR) is NOT entitled where the land is in a contaminated state as a result of anything done or omitted to be done – by the company or anyone connected to the company.
For example – if.. a company purposefully pollutes the land – it cannot claim relief…(pity… that would have saved a few quid…)
ALSO – if the company is advised to clean up the land immediately but then doesn’t – and then next year cleans up the land (at an additional cost) then this would NOT qualify.
Claims are made through the company’s corporation tax return.
Land with JK on it NOW DOES COUNT as land in a contaminated state.
It should be noted that the Revenue will always go through each element of the works and will undoubtedly argue each and every section of the claim. It is likely that initial works and chemical treatment will be allowed …but aftercare and maintenance may not…
Japanese Knotweed Solutions will endeavour to support any client with an application for LRTR to ensure that they gain maximum tax relief where possible.
Hope that clarifies the situation.
Mike C
