Major UK firms and financial institutions will need to show how they will meet climate change targets under proposed Treasury rules announced at the Summit.
Sustainability Disclosure Requirements (SDRs)
They will also be subject to forthcoming mandatory Sustainability Disclosure Requirements (SDRs) requiring them to report on their environmental risks and impact on an ongoing basis. SDRs will affect certain large companies, listed companies, relevant financial services firms, asset managers and asset owners including occupational pension schemes, and creators of investment products.
These developments clearly indicate the government’s direction of travel in aligning UK business with its wider environmental goals.
Eco-friendly financial incentives
Meanwhile, there are already a number of financial incentives in place to encourage all types of business to become more eco- friendly.
Enhanced Capital Allowance Scheme
For example, firms can claim 100% tax relief on the cost of energy-efficient technology and equipment, like solar panels and heat pumps, through the Enhanced Capital Allowance scheme.
Electric Vehicles
Switching to new, pure electric vehicles has been made more affordable for businesses as they qualify for a 100% first year capital allowance until April 2025 and a company benefit rate of just 1% for 2021/22. And for businesses and employees looking to do their bit on a smaller scale, the cap on the value of bicycles and electric bicycles purchased through the cycle to work scheme has also been removed.
Property Development
For property developers involved in cleaning up contaminated land, up to 150% tax relief is available on the cost and, additionally, a 24% cash repayment for the remediation costs can be claimed if the development makes a loss.
Can we help?
If you would like to discuss the incentives available to help your business go green, please get in touch with your Shipleys’ contact or one of the specialists shown on this page.
Specific advice should be obtained before taking action, or refraining from taking action, in relation to this summary.
Copyright © Shipleys LLP 2021
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