About the claim
Trench Lock Limited is a landlord for an industrial estate with various types of business. The landlord undertook a significant project to replace the roofs of 35 units. The existing roofs contained asbestos, necessitating complete replacement before considering a sale. The entire expenditure had been categorised as revenue which attract 100% tax relief however by working closely with the client and accountant, we were able to secure additional tax savings. As the cost qualified for Land Remediation Tax Relief, this secured a 50% uplift on the costs to replace the roof.
Identification of Eligible Costs:
Our team collaborated closely with both the client and their accountant to identify the costs directly related to the roof replacement. This involved reviewing the expenditure in detail and understanding the specific expenses incurred and reasoning for the replacement.
Preparation of Report:
Once the eligible costs were determined, we compiled a comprehensive report for the client. This report included a breakdown of the claimable amounts that qualified for Land Remediation Relief, a claim relating to current year costs. The report was then handed over to the accountant for incorporation into the client’s tax returns.
While the initial revenue expenditure treatment by the accountant had already claimed 100% tax relief, our approach of identifying the expenditure eligible for Land Remediation Relief proved to be highly beneficial. By segregating and categorising the expenses correctly, we were able to secure an additional 50% tax relief for our client.
Other areas of qualifying expenditure are...
Flood risk assessment
Breaking out buried structures
An observation from our Managing Director, Chris Roberts...
“This case highlighted the importance of accurately categorising and identifying expenses when pursuing tax relief opportunities. Even though the client had already received tax relief based on the initial treatment, the identification of specific expenses eligible for Land Remediation Relief resulted in significant extra tax savings. This demonstrates the impact that a well-informed and strategic approach can have on maximising tax benefits for businesses.”