January 27, 2003—As US and UK forces continue to mobilize against a background of terrorism warnings, spending on new security measures will be on the agenda in many boardrooms, says a recent report in i-fm.
According to George Bull, tax partner at accountancy firm Baker Tilly, much of this investment could offer significant tax relief, where the steps taken focus on key business personnel.
“The Inland Revenue will grant tax relief where employment exposes an employee to a very real threat to their physical safety from terrorists and others who may resort to violence,” says Bull. “In the past, this has usually applied to personnel in multi-nationals or the diplomatic corps posted to politically unstable locations. However, given how the world has changed since 9/11, it is entirely possible that this tax relief will now be claimed by people in the UK.
“Similarly,” Bull adds, “a business can also claim tax relief if it provides at-risk personnel with home security assets like alarm systems, bullet resistant windows, floodlights, reinforced doors and windows and perimeter walls and fences.”
Current legislation also allows for tax relief on VIP bodyguards and for the provision of bulletproof vests, if there is a very real threat to the recipients safety. Personal alarms may also qualify for tax relief for some employees, notes Bull.
But, says Bull, the Inland Revenue specifically excludes cars, ships or aircraft from such relief, so high-fliers will still have to pay in full if they want to travel in armored safety.
— Elliott Chase
Reprinted with permission; copyright 2003 i-FM
