Burberry gives up 6 million pounds in tax relief: “It’s the right thing”

Burberry gives up 6 million pounds in tax relief: “It’s the right thing”

Burberry waives government tax relief of approximately 6 million pound. The measure was available to companies that “operate in retail”, to reimburse them for the closing periods imposed by the pandemic. “We believe this is the right thing to do,” said the British brand. In addition, Burberry repaid a  300 million pounds loan a month in advance, citing an improvement in its liquidity.

Burberry waives tax relief

According to This is Money, which broke the news, Burberry’s is a surprise move. So far, only a few companies that have continued to operate during lockdown have decided to waive the planned tax relief. The brand is the first company that sells “non-essential products” to make this choice.

The right thing to do

“We believe this is the right thing to do,” Burberry explains. “It is part of the improvement in commercial performance in the third quarter”. But also in that of “the financial stability that we have ensured through rigorous cash management and the introduction of long-term loans such as the sustainability bond”. In 2020, Burberry also waived public subsidies for layoffs.

Another 300 million pounds

In recent days, Burberry has also repaid a 300 million pounds loan a month in advance. It did so by stating that it had better expectations about both the UK’s economic recovery and its own performance.

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