Crossword Genius

Renew or place a tax on initiating enterprises (8)

Ross

I believe the answer is:

renovate

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'renew' is the definition.
(I know this)

'place a tax on initiating enterprises' is the wordplay.
'place' becomes 'reno' (I am not sure about this - if you are sure you should believe this answer much more).
'a tax' becomes 'VAT' (UK Value Added Tax).
'on' is a charade indicator (letters next to each other).
'initiating' indicates taking the first letters (I've seen 'initiated' mean this).
The initial letter of 'enterprises' is 'e'.
'reno'+'vat'+'e'='RENOVATE'

'or' acts as a link.

Can you help me to learn more?

(Other definitions for renovate that I've seen before include "Bring back to pristine condition" , "Restore to good condition" , "Make as new" , "Restore to a good state of repair" , "Restore to a previous or better condition" .)

I've seen this clue in the Evening Standard.
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