JAPANESE KNOTWEED TAX BREAKFREQUENTLY ASKED QUESTIONS

WHAT HAS CHANGED, WHY CAN I MAKE A CLAIM FOR TAX RELIEF NOW WHEN I COULD NOT IN THE PAST?

HM REVENUE & CUSTOMS HAVE NOW CONFIRMED THAT THEY HAVE HAD A CHANGE OF VIEW ON WHETHER JAPANESE KNOTWEED QUALIFIES AS A CONTAMINATING SUBSTANCE FOR LAND REMEDIATION RELIEF (“LRR"). IT IS NOW POSSIBLE TO MAKE A CLAIM FOR THIS VALUABLE TAX RELIEF SO YOU SHOULD ACT NOW TO ENSURE YOU MAXIMISE THE POTENTIAL BENEFIT TO YOU.

WHO CAN MAKE A CLAIM?

THE TAX RELIEF IS ONLY AVAILABLE TO COMPANIES SO IT CANNOT BE CLAIMED BY SOLE TRADERS, PARTNERSHIPS OR LIMITED LIABILITY PARTNERSHIPS.

WHAT CAN I GET FOR MAKING THE CLAIM?

WHERE EXPENDITURE QUALIFIES FOR THE RELIEF, 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.

WHAT KIND OF EXPENDITURE QUALIFIES FOR THE RELIEF?

CLAIMS COULD POTENTIALLY INCLUDE THE FOLLOWING:• STAFFING COSTS (INCLUDING SALARY, CLASS 1 NATIONAL INSURANCE CONTRIBUTIONS AND PENSION CONTRIBUTIONS) OF WORK DIRECTLY ON THE LAND REMEDIATION, • MATERIALS USED DIRECTLY IN THE REMEDIATIONMOST IMPORTANTLY, PAYMENTS TO CONTRACTORS, SUCH AS HERPETOSURE INVASIVE SOLUTIONS LIMITED.

IF I HAVE SPENT MONEY ON THE REMOVAL OF JAPANESE KNOTWEED IN THE PAST CAN I MAKE A CLAIM NOW?

IT IS NOW POSSIBLE TO MAKE A CLAIM FOR EXPENDITURE MADE UP TO SEVEN YEARS AGO FOLLOWING THE CHANGE IN INTERPRETATION MADE BY HM REVENUE & CUSTOMS.

CAN I MAKE A CLAIM WHERE THE “CONTAMINATION" OCCURRED AFTER THE COMPANY TOOK OWNERSHIP OF THE LAND?

IN THE PAST CLAIMS COULD NOT BE MADE WHERE THE CONTAMINATION OCCURRED AFTER TAKING OWNERSHIP OF THE PROPERTY, EVEN WHERE THE COMPANY WAS NOT AT FAULT. RULES WHICH ARE PROPOSED TO TAKE EFFECT FROM 1 APRIL 2009 COULD NOW ALLOW CLAIMS FOR CONTAMINATION OCCURRING DURING THE OWNERSHIP OF THE COMPANY IN LIMITED CIRCUMSTANCES. YOU SHOULD PAY PARTICULAR ATTENTION TO THE TIMING OF EXPENDITURE IN SUCH CASES AND TAKE PROFESSIONAL ADVICE TO ENSURE THE BEST RESULT.

WHAT IS THE NEXT STEP?

IN ORDER TO MAXIMISE YOUR CLAIM IT IS ESSENTIAL TO ACT QUICKLY. IF YOU HAVE ANY QUESTIONS ON THE BEST APPROACH PLEASE FEEL FREE TO CONTACT JAMES TYERS ON 01664 444 660 / 07970925305 OR EMAIL JAMES.TYERS@HERPETOSURE.COM