Filed under: entrepreneurs relief
Over the years, our tax planning advice when buying property has varied according to a client’s tax position and funding availability at the time. We are always being asked the question “should property be bought personally or through a company?” The answer to this question is not clear-cut; in recent years the tax relief available on the disposal of commercial property favoured the purchase of this type of property personally, but the reliefs are ever changing, and the answer has become more subjective.
January 22, 2013
Share ownership has always been a powerful motivator for companies looking to recruit and retain talented and loyal staff. It’s something Nick Clegg referred to last year when he talked of the ideal John Lewis Partnership model for companies to aspire to. The Deputy Prime Minister believes companies that offer shares to their workers tend to be more dynamic, have higher levels of morale and staff who are more motivated to work hard.
At a time when salary increases may not be a viable offering for many companies, share options are set to become an even more attractive proposition, provided new proposals earmarked for inclusion in the 2013 Finance Bill are adopted. In the past, what the Government has announced in the Autumn Statement has tended to be introduced, so we expect this tax planning opportunity to become available to clients later in 2013. (more…)
January 7, 2013
When a company is wound up informally there are important tax issues to be aware of, both for the company and for its shareholders; any losses must be accounted for and the relevant tax legislation must be borne in mind when disposing of the company’s remaining assets.
If you are in a position whereby you might wish to wind up a company, you may also wish to utilise any tax planning opportunities in order to minimise your personal tax liabilities. These are likely to involve tax planning in advance and may cover multiple accounting periods and span more than one tax year. (more…)
September 24, 2012
Installment 2 of our focus on entrepreneurs’ relief. In essence, the entrepreneurs’ relief rules can appear deceptively simple; it can be dangerous to assume that all business assets qualify for the relief and this should be regularly checked. In addition, there are ways in which the relief can be maximised with forward planning. With the recent increase in the top rate of capital gains tax to 28%, it is a valuable relief and worth arranging your business affairs to ensure it is maximised.
Continue June 13, 2011
Entrepreneurs’ relief can offer significant tax savings when exiting a business either completely or partially. However to get the maximum benefit of this relief, it is important to think ahead and plan accordingly. There are a number of qualifying criteria to consider depending on your individual circumstances, and action should be taken as soon as possible to avoid disqualification. In most cases, entrepreneurs wishing to use this relief need to review their position at least a year before a sale to ensure they qualify.
Continue June 6, 2011