It’s possible that your company will be eligible for Land Remediation Tax Relief.
Tax relief for Japanese Knotweed treatment
Land Remediation Tax Relief, known as LRTR, was introduced under the Finance Act 2001 for all companies involved in the remediation of contaminated land, whether for commercial or residential purposes. For corporate bodies LRTR is available at 50% for developers (i.e., those trading in property), whilst property investors or owner occupiers can benefit from 150% relief against their qualifying expenditure. If you are not a corporate body the tax relief is not available.
The legislation currently permits any expenditure that prevents, minimises, remedies, or mitigates the risk of any harm being done to people, property or the wider environment. The harm, or potential to cause harm, must be as a result of a substance or substances in, on or under the land to be applicable.
“Substances” include for example heavy metals, hydrocarbon contamination and, arguably Japanese Knotweed.
Specialist Tax Consultants can help to claim the tax that is rightfully yours for all Japanese Knotweed remediation undertaken since May 2001. Landfill Tax is now charged generally at the standard (higher) Landfill Tax rate for disposal of contaminated soils following the removal of the exemption in 2008, significantly increasing the cost of the Dig & Dump solution.