News: Press Releases:
No tax relief
for firms facing horrendous security bills.
13 September 2004 Despite horrific attacks around the world
and UK cities being on continuing Terrorist alert, the Government is continuing
to deny tax relief to companies who are spending millions to safeguard their
premises and staff from potential attack.
" Organisations big and small are rightly
being encouraged to spend large amounts on improving their security
arrangements to safeguard their staff and premises, " said Steven Bruck, a
senior partner at London Chartered accountants Blick Rothenberg, " Such
expenditure can include substantial money spent on improvements to premises and
surrounding areas, such as security doors, shatter resistant windows, and fixed
obstacles and barriers to limit vehicle and pedestrian access. Because such
items are classified as improvements to premises they frequently do not rank
for tax relief. In this area the availability of tax relief is wholly random.
That is because it follows rules which give relief only for expenditure which
can be classified as plant and machinery or fixtures and fittings or research.
These rules, which have been built up over
the years, are quite inappropriate in the field of today's security threats.
Even expenditure on fire precautions benefits from specific tax
allowances...but the granting of tax relief for capital expenditure on a whole
range of security precautions remains wholly random and is not specifically
provided for."
He added: " in the light of recent
international events, security precautions should surely be receiving
considerable priority and should receive specific attention in tax
legislation". Bruck believes that this should now be urgently addressed by the
Revenue and says that the Chancellor should be dealing with this at the latest
in his autumn budget statement.
"It is ironic that firms can claim for
expenditure on tea making machines but cannot claim for the cost of a security
fence to keep out suicide bombers" said Bruck. It is important that tax
legislation should move with the times and reflect public policy. In this
context this would appear to be a remarkable and reprehensible omission"
EDITOR'S NOTE:
Blick Rothenberg's
client base includes a wide range of private sector companies in a variety of
industries as well as professional firms and charities. This breadth of
clientele means that they have practical experience of all accountancy issues
ranging from UK tax and audits to acquisitions, disposals of businesses and
international taxation. They also provide all-round taxation, accountancy and
other financial services to their personal client portfolio.
Blick
Rothenberg is authorised & regulated by the Financial Services Authority to
carry on investment business. |
