Westminster Security

Personal security is a tax-deductible expense

employment, there is no necessity for any direct or impending danger. And the expenditure must be in connection with the use or provision of an asset or service which improves personal security.

CEOs, Directors, and other business executives could invest in a wide range of personal security services and assets, such as close protection, security chauffeurs, residential security guards, security doors and windows, and even a secure panic room if required.

Most company owners and directors are unaware that security expenses are tax-deductible for businesses.

While some companies see security as an unnecessary expense, it is essential to protect assets and employees. Investing in security can increase productivity, prevent theft, and protect owners and employees in the event of a robbery or targeted attack. Not only is security a wise investment, but it can also reduce tax liability.

This little-known fact is not widely discussed or published online. HM Revenue and Customs (HMRC) allows companies to offset their security expenses on services and assets that improve property and personal security against their corporation tax liability. However, some requirements must be met to be eligible for a tax deduction.

The perceived threat and risks must be established from the particular trade or

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Similarly, a company could invest in office or retail store security, such as CCTV and alarms, security guards, security shutters, etc. even bodyguards for employees in the event of a special threat. Sole traders or limited company directors working from a home-based office could also invest in tax-deductible services and assets to protect themselves from potential threats.

The interpretation of “special threat” is not necessarily prescriptive and introduces a grey area open to interpretation. Therefore, documenting the reasoning for the allowance is essential in case of a subsequent dispute. Businesses can benefit from increased security, improved morale, retention and reputation, productivity, and profits, whilst saving tax by investing in security.

Westminster Security are experts in threat and risk mitigation providing property and personal security in the UK and internationally for highthreat and high-risk business leaders and their families.