Under this new facility, the Bank of England will buy short-term debt (of up to one-year maturity) from larger, non-financial companies.
There does not, at present, appear to be a clear definition of what defines a “larger company”. HMRC have announced that the minimum purchase by the Bank of England will be £1 million and that a company must be making a material contribution to the economy. In practice we understand that UK incorporated companies with a genuine business in the UK should qualify. Companies will need to demonstrate that they were in good financial health prior to COVID-19.
You need to talk to your current bank lenders about using the scheme.
For further information, contact our Tax Director Aidan Meade at email@example.com.