Asbestos Removal Grants & Tax Relief

Written by Tom Yates . Edited 25th April 2024

Fact Checked by William Wright, NEBOSH

So, you’ve found traces of asbestos in your home or a property or land you are considering purchasing and you want It removed. You find this is quite a costly endeavour and want to know if there are any grants or financial aid available in the UK. 

Don’t worry – in the below guide, I explain all the current asbestos removal funding options available, together with how you can find more information relating to your specific property. 

Asbestos Grants from the UK Government

Unfortunately, there are no asbestos removal grants in the UK. There have been asbestos removal grants previously, such as the Northern Ireland national grant scheme for asbestos roof removal, but all of these are ended. 

If you want to find out more about asbestos services and removal in your local area, the government has a simple search tool where you enter your postcode and it then gives you a link to your local council’s dedicated asbestos page.

Other Available Funding and Financial Aid for Asbestos Removal

While there aren’t currently any UK government grants, there is some situational financial aid available specifically for land remediation relief, and stamp duty relief for uninhabitable properties.

Land Remediation Relief (Corporation Tax Relief) for Asbestos

The Land Remediation Relief essentially gives you a corporation tax deduction. It is meant to help land owners or businesses who have had to clean up land where there are potentially harmful substances including asbestos. 

If you qualify for the corporation tax relief, you get the following benefits: 

• 100% reduction in corporation tax (relating to the purchase or the land).
• An additional 50% reduction for qualifying expenses relating to the clean-up of the land. 

As you can see, that makes a sizeable difference and makes buying contaminated land much more viable. The government has specific guidelines for what is considered contaminated and it specifies that the land must be contaminated as a result of industrial activity to the state that:

• It causes relevant harm.
• There is a high possibility that it can cause relevant harm.
• It is causing significant pollution to groundwater, rivers, coastal waters, and streams.
• There is a high possibility that it could cause pollution to groundwater, rivers, coastal waters, and streams.

The 50% deductible expenses for the clean-up of the land also includes the initial cost of assessing the levels of contamination and potential harm.

Below is an example scenario of land remediation relief / tax relief on the removal of an asbestos roof.

Asbestos Cement Roof Removal for Industrial Unit

An industrial unit has been purchased with an asbestos cement roof in poor condition. 

You have the roof removed and replaced with a new safe/modern material (such as metal roofing sheets).

Cost for of removal of asbestos: £10,000

Cost of new replacement roof: £30,000

• £40,000 can hit the P&L as an expense (resulting in a corporation tax saving of £10,000*)
• An additional expense of £5,000 can hit the P&L as an expense due to the 50% reduction based on the asbestos removal costs (50% of £10,000 = £5,000)

As you can see the above scenario can equate to a tax saving of £11,250*

Please note these figures are hypothetical, you will need to consult your accountants to ensure your situation and business qualify for this relief. 

* based on corporation tax being at 25%

Stamp Duty Land Tax Relief for Uninhabitable Property

If you are buying a property that is deemed as uninhabitable then it is possible to get stand duty relief but there are specific indicators that make a property “uninhabitable”, including the presence of asbestos. They are essentially indicators that mean the property is uninhabitable because it poses a major health risk if people were to live there. Examples of factors include:

• Presence of asbestos throughout the building.
• Severe leakage and flooding throughout the building.
• Severe rotting or mould.
• Plumbing and heating issues.
• Unsafe electric wiring.
• Plant growths on the building that could affect the structure. 

Depending on the property value of the lease premium affects the SDLT (Stamp Duty Land Tax) reduction. For example, if your property qualifies, the first £150,000 has 0% SDLT, the next £100,000 has 2%, and anything above that has the standard 5%.

Stay Up to Date With Government Developments on Asbestos 

In time things could change but for now I want to reiterate that there are no UK government grants for asbestos removal. There is however some tax relief to be had if purchasing a property which requires asbestos removal to make it habitable. I advise checking the HSE portal for asbestos and if you are in a situation where you need asbestos removal, speak to a professional removal company to see what they advise.

References 

[1] – UK GOV – Asbestos in Your Home

[2] – UK GOV – CIRD60015 – Land Remediation Relief