Drax celebrates tax deal

5th Apr 2011 08:18

Coal-fired power station operator Drax is to get £180m cash in tax relief after reaching an agreement with the UK tax man.Drax and Her Majesty's Revenue and Customs (HMRC) have settled an issue relating to Drax's Eurobond financing structure.As a result, £117m of cash ring fenced on the balance sheet pending the resolution of the issue will now be released, while further tax losses valued in the region of £63m have been agreed, and these will be offset against tax charges over the coming years. "If we receive appropriate regulatory support, this cash will form an integral part of the capital required to deliver our biomass strategy, which in turn will provide the UK with cost effective, reliable and flexible renewable electricity," said Tony Quinlan, finance director of Drax.---jh