Cash is king during a global pandemic like COVID-19. Taking the world by complete surprise and having a dramatic impact on many businesses, it has made many owners realise just how important positive cash flow can be and work to find new ways to mitigate risk to their working capital and ensure business continuity.
With numerous loans and grants being announced, we’re surprised that many are still unaware or have overlooked the cash generation benefits that come from various Government tax reliefs.
One such relief is Land Remediation Relief (LRR). It is available to any Limited company landowner who acquires a site in a ‘contaminated’ state and goes through a remediation process to ‘clean’ up said land.
LRR allows those who are eligible to claim a tax deduction of 150% of the expenditure you have incurred, regardless of whether it is capital or revenue expenditure.
Landowners can also make a claim up to two years following the company’s accounting year-end.
Those who have previously paid Corporation Tax are eligible for a repayment from HMRC, together with those who have made losses and haven’t paid any Corporation Tax.
To maximise working capital, every business must think beyond their operations. Whilst changes have come into effect to ensure the Coronavirus Business Interruption Loan Scheme (CBILS) reaches more SMEs, many still believe it to be inaccessible to them. It is therefore crucial that businesses carefully consider every available funding stream and relief at their disposal to keep your goods and services flowing.