Breaking News Japanese Knotweed Tax Break

Breaking News – Japanese Knotweed Tax Break

HMRC have recently announced that the removal of Japanese Knotweed could qualify for the valuable Land Remediation tax relief. This potentially gives a tax super-deduction of 150% of your expenditure. It means that your company could get up to 45% of your expenditure back from the Government through tax relief. It is even possible to claim cash repayments in certain circumstances.

The new HMRC rules relating to Japanese Knotweed remediation are due to be adjusted for expenditure made after 1 April 2009 so it is important to review this now to ensure that you maximise the tax relief available to you.

Key Facts – Click Here For a Working Example

Companies may obtain a “super-deduction" in the form of an enhanced tax deduction of 150% of the actual amount spent. This could mean that you get tax relief for up to 45% of the cost of the remediation.
Where the company makes tax losses, a cash repayment of 24% of the amount spent can be claimed from HMRC.
The relief is only available to companies, not individuals, sole traders, partnerships or LLPs;
As the rules stand the contamination must have occurred before the company took ownership of the land;
The company cannot receive a subsidy for the cost of the clean up;
Qualifying expenditure could include payments made to contractors such as Herpetosure Invasive Solutions Limited, staffing costs and materials used directly in the clean up;
The rules change from 1 April 2009 so you should check how you will be affected now. Changes include that it could be possible to claim for relief where the contamination has occurred during the ownership of the company. There is likely now to be a requirement that the Knotweed cannot be disposed of in landfill sites.

See Our Frequently Asked Questions, Click Here

What To Do Now

Any claim is subject to time limits set by law so it is essential to act now to ensure that you maximise your claim. As part of our detailed appraisal of the consultation process undertaken by HMRC we have been in contact with experts in property taxation Mazars LLP. Mazars have a wealth of experience in all aspects of taxation and are offering a no ties consultation to our customers. If you are interested in discussing this further please call James Tyers – The Herpetosure Group 01664 444 660 or email James.tyers@herpetosure.com

Herpetosure®