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COVID-19

COVID-19: Utilising tax reliefs

In light of the current COVID-19 outbreak, cash flow is more important than ever. Taking advantage of certain tax reliefs can reduce your tax bill, generate tax credits and or tax refunds. Has your business considered maximising some of the below key tax reliefs available?

Capital Allowances:

  • Do you own commercial property?

(for example; offices, industrial units, retail units, nursing homes, coldstores)

  • Have you recently refurbished/completed fit-out of a commercial space?
  • Have you considered the tax relief available for plant & machinery contained within the fabric of the building?

(for example; mechanical and electrical systems, hot and cold water systems, lifts)

  • Capital allowances identified can range between 20% - 80% of the costs incurred, depending on the profile of the property.

Land Remediation Relief:

  • Have you undertaken land remediation on a contaminated or derelict site for a commercial site?
  • Was this work undertaken for the purposes of your trade?
  • Or is your company a UK registered property business?
  • Are you aware that you can claim an enhanced deduction of 150% for the clean-up costs?

(for example: asbestos removal, removal of pollutants and hyrdro-carbons, Japanese knotweed)

Research & Development:

  • Have you developed or improved a product, process or service?
  • Have you tried something new or pushed existing boundaries in your industry?
  • Have you identified an issue in your sector and made efforts to overcome it?
  • Have you improved, exceeded or modified the industry standards?
  • Have you been forced to make changes due to compliance, legislation, regulations or industry standards?
  • Have you been contracted to do any of the above?
  • Small or Medium sized Enterprise (SME) can receive a benefit of up to 33% or if the Company is large and make a claim under the Research & Development Expenditure Credit (RDEC) scheme the benefit is 10.5%.

Patent Box:

  • Do you currently own a patent?
  • Are you applying for a patent?
  • Do you have a licence to use a patent?
  • Are you considering a patent?
  • If so your company may be able to avail of patent box relief, the effect of which is to tax profits attributed to qualifying intellectual property at a rate of 10% instead of the standard UK corporation tax rate of 19%.

If any of the below questions relate to your business, please get in touch with our specialist team at Grant Thornton to see what options are available to you.