The cost of removing asbestos from a building, in the opinion of Inland Revenue, is capital in nature.
There is a special provision which allows you to depreciate this cost over 35 years in equal amounts each year.
The costs of investigating and testing for asbestos are tax deductible costs similarly, expenditure related to monitoring the discharge of asbestos and of cleaning up or soil removal are tax deductible.
If you are removing asbestos from machinery, piping and lagging et cetera the cost has to be added to the cost of the asset and depreciated at the same rate as the asset.
If you’re trying to clean up contaminated land, there is no tax deduction or depreciation.
