Yahoo Finance B&Q owner becomes latest firm to return COVID-19 tax relief
B&Q and Screwfix owner Kingfisher (KGF.L) has become the latest firm to return its COVID-19 tax relief to the UK coffers.
Tax relief for businesses was one of the schemes brought in by the UK government when the pandemic hit, and was designed to support the ailing economy.
The firm said it had already repaid £23m ($30.5m) received under the Job Retention Scheme. It said it had expected £110m of the £130m business rates relief to hit its books in this financial year, ending January 2021, and the remaining balance in the following year.
The relief means results for the year to next January will now include £85m less non-recurring cost savings, net of any one-off COVID-related costs.
DIY dealers have been among the winners of the pandemic, as people, stuck at home during lockdowns have turned to home improvements.
Kingfisher’s stock has benefitted from an around 23% bump in the year-to-date, although this morning it took a slight knock in early trading in London.
Kingfisher said in a statement: “While uncertainty remains in the markets in which we operate, we are confident that we can address the key risks we face, and that as our strategy is delivered we will be able to continue to grow our business.”
READ MORE: Pressure grows on Waitrose, M&S, Iceland, and Co-op to return COVID-19 tax relief
Pressure has been mounting on businesses as some of Britain’s biggest supermarkets have also opted to return millions of pounds.
Britain’s five biggest supermarkets, Sainsbury’s (SBRY.L), Aldi, Asda, Tesco (TSCO.L) and Morrisons (MRW.L) have all pledged to return business rates relief granted by the government earlier this year. The commitments, made over the last week, follow weeks of public pressure.
Lidl, the seventh biggest supermarket, joined the movement on Friday, pledging to return £100m in taxes saved earlier in the year. The company’s UK CEO said it was “the right thing to do.”
Meanwhile, Waitrose, Marks & Spencer (MKS.L), Iceland, and Co-op have all either stayed silence or publicly said they won’t return cash.
Three of the four argue that the impact of COVID-19 on other parts of their business means they can’t afford to forgo rates relief.
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