Hannah Dobson looks at some environmental taxes and reliefs beneficial to SMEs.
Company Vehicles
From April 2010 for five years, electric company cars used for private purposes will be exempt from company car tax. Electric vans will also be exempted from the van benefit charge. In addition, subject to the Government confirming the state aid position, 100% first year capital allowances will be available for capital expenditure by businesses on new electric vans.
Plant and Machinery
Businesses can claim energy efficient plant or machinery allowances. These offer the opportunity to claim first year allowances of up to 100% of the expenditure incurred, or the opportunity to surrender losses generated by the allowances in return for a tax repayment.
Research and Development
Many companies miss out on tax relief by failing to claim R&D tax credits or relief. It is worth re-assessing the way the R&D claims are put together to maximise the tax relief, as the categories of qualifying expenditure have widened.
Business Premises Renovation
The business premises renovation allowance is a temporary tax relief introduced to incentivise individuals and companies to renovate certain vacant premises.
Land Remediation Relief
Land remediation relief allows businesses to claim corporate tax relief for costs incurred in the clean up of contaminated land.
Climate Change Levy
Energy intensive sectors who have entered into climate change agreements entitling them to a reduced rate of climate change levy will see the reduced rate increase from 20% to 35%.
Patent Box
In order to build on incentives to invest in innovative industries, the Government is introducing a 'Patent Box' from April 2013. This will essentially be a reduced rate of corporation tax of 10% on the income from certain patents.
Get Specialist Advice
It is worth seeking advice to find out whether your business qualifies for any of these or other green tax breaks. They can provide valuable tax reliefs, improve your cash flow and increase both pre- and post-tax profits.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.