08/09/2025
Building ConsultancySome estimates suggest that as many as 1.5 million buildings in the United Kingdom contain asbestos (as of September 2023). The Health and Safety Executive claims this harmful material is the “greatest cause of work-related deaths in Great Britain”, with approximately 5,000 people sadly dying from exposure to it annually.
For UK property owners, discovering asbestos can be a daunting experience. The worry of your occupants' health, expensive removal and replacement fees, and falling building value can each have a significant impact on mental health.
However, what many owners do not know is that there is a tax relief for the remediation of commercial spaces contaminated with asbestos. Our guide takes a closer look at the relief and how it can be accessed for buildings containing this dangerous material.
What is asbestos removal tax relief?
The official name for the corporation tax allowance for asbestos removal is Land Remediation Relief. It was first introduced in April 2009 to help owners clean up land that was acquired in a contaminated state.
A contaminated state can be defined as land or buildings that are:
- Causing relevant harm
- There is a serious possibility that it could cause relevant harm
- It is currently or could cause significant pollution to groundwater, streams, rivers and coastal waters
Land Remediation Relief works by giving you a 100% tax deduction, plus an additional 50% deduction, on your company’s qualifying expenditure for cleaning up contaminated land you acquired from a third party.
Who is eligible for asbestos removal tax relief?
Your business will be eligible for asbestos removal tax relief if it meets the following criteria:
- You are not the original polluter of the land or property. The asbestos contamination must have been present when you purchased the land
- You are a UK-registered company
- You are not receiving any other funding to pay for asbestos removal or remediation
How to claim capital allowances for asbestos removal?
Capital allowances for asbestos removal are claimed through tax returns. Your claims must be properly made to meet HMRC’s requirements, and this means providing the following information at a minimum:
- Expenditure details, including invoices
- Labour and material costs
- Confirmation that the land or building was purchased in a contaminated state
- Copies of environmental reports and surveys
- Confirmation of asbestos
- Removal or remediation methodology
The benefits of claiming tax relief for contaminated land
Removing asbestos and claiming tax relief for it can be extremely beneficial to your business for several reasons. From a financial perspective, you can improve cash flow by offsetting your taxable projects, and your property value may increase once the contamination is removed.
Beyond savings, you can demonstrate your commitment to compliance, environmental protection and employee safety. Each of these can positively impact how customers, investors and team members view your company.
Can I get help claiming my asbestos removal relief?
Our team can provide advice and guidance on how Land Remediation Relief claims work. We have extensive knowledge of this capital allowance and will be happy to answer any questions you have about it.
In terms of claiming the asbestos tax relief, we recommend working closely with an accountant who will be able to ensure your tax returns are compliant with HMRC’s requirements.
Speak to us about your Land Remediation Relief asbestos claim
If you would like to discuss the Land Remediation Relief for asbestos removal further, please call 0800 051 2593 or complete our get in touch form. Our experienced building consultants can also help with the project management of your remediation work if required.
Frequently asked questions about asbestos tax removal
Can I claim asbestos tax relief on a residential property that is not part of a business?
No, the asbestos tax relief is only available on commercial properties used for business purposes.
