Tax Relief for Flood Affected

Mar 3, 2014


By Lyndsey Hall

HMRC and the government have announced a series of measures to help those affected by the recent floods, with the worst affected area experiencing extreme weather conditions, flooding, power cuts and a limited or non-existent rail service.

Businesses affected by the bad weather can apply to their local authority for three months’ worth of business rate relief, and those who take advantage of Time To Pay could have their arrangements extended for up to three months for VAT, PAYE and CT. A £10m fund for farmers has been announced to restore agricultural land affected by the flooding. A £5k repair and renew grant will be available for homeowners and businesses with flood damage to help pay for repairs.

Major Banks have pledged £750m for customers who have been financially affected by the floods, including RBS’s £250m interest free loan fund for affected business, and repayment holidays offered to mortgage customers. Barclays and Lloyds have also announced financial packages of £250m each, and HSBC, Santander and Nationwide have launched support programmes for their affected business and individual customers.

The Department for Transport (DfT) has also pledged £31m to ten projects to repair the damage and improve the resilience of affected rail networks, with the main area being the South West. It has even been suggested on Twitter that the money earmarked for HS2 be used to invest in repairing the damage done to the rail network in the aftermath of the floods. A recent article on BBC News even suggested that HS2 could increase the risk of flooding to homes along the route, as farmland that currently acts as a natural barrier would be built upon.

If your business has been affected by the recent bad weather and flooding, get in touch with your local authority soon and they will advise you how to make a claim.


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