The ATT is urging the government to consider expanding the eligibility criteria for tax relief on contributions to flood defence projects.
The ATT is urging the government to consider expanding the eligibility criteria for tax relief on contributions to flood defence projects. At present businesses that contribute to approved flood and coastal defence projects can deduct their contribution from the profits of the business for tax purposes, reducing their income tax or corporation tax bill. ATT is suggesting the relief be expanded to enable individual taxpayers to make such contributions on a similarly tax-efficient basis. This might be done for example in a similar manner to gift aid or payroll giving. The call to expand the scope of the relief comes as Storm Desmond has led to severe flooding in parts of Britain.
Paul Hill, chairman of ATT’s Technical Steering Group said: ‘By extending the scope of flood defence tax relief to contributions from individuals regardless of their particular source of income, more communities could benefit from flood defence projects and do so more quickly. At the beginning of the year, the ATT drew attention to the lack of logic in only granting tax relief on a contribution to an approved flood defence project if it was made by a business. We see no reason why less value should be attributed to contributions from private individuals than to those from businesses. On that basis, tax relief should be equally available on all contributions regardless of the source.’
The ATT is urging the government to consider expanding the eligibility criteria for tax relief on contributions to flood defence projects.
The ATT is urging the government to consider expanding the eligibility criteria for tax relief on contributions to flood defence projects. At present businesses that contribute to approved flood and coastal defence projects can deduct their contribution from the profits of the business for tax purposes, reducing their income tax or corporation tax bill. ATT is suggesting the relief be expanded to enable individual taxpayers to make such contributions on a similarly tax-efficient basis. This might be done for example in a similar manner to gift aid or payroll giving. The call to expand the scope of the relief comes as Storm Desmond has led to severe flooding in parts of Britain.
Paul Hill, chairman of ATT’s Technical Steering Group said: ‘By extending the scope of flood defence tax relief to contributions from individuals regardless of their particular source of income, more communities could benefit from flood defence projects and do so more quickly. At the beginning of the year, the ATT drew attention to the lack of logic in only granting tax relief on a contribution to an approved flood defence project if it was made by a business. We see no reason why less value should be attributed to contributions from private individuals than to those from businesses. On that basis, tax relief should be equally available on all contributions regardless of the source.’
