Tax Planning for Businesses and their Owners

Overview

This Report is aimed at owners and managers of businesses- businesses of all sizes but with particular emphasis on small and medium-sized entities. It focuses both on the tax implications of business decisions and on opportunities for the reduction of the owners’ personal taxation.

The Report is written in plain, accessible English and covers the full breadth of the subject. It is essential reading for financial directors, managers and business owners, and will guide you down the right track towards reducing your tax burden.

The benefits of this Report

This Report will:

• Advise on what is best for you when taking income from organisation whether it should be a dividend or a salary and the implications of the Arctic Systems case

• Transform an expert Chartered Accountants tax planning experience into plain English in an easy to follow structure and concise text

• Detail the gains which can be made for loss relief for partnerships and sole traders

• Explore the benefits of employee share schemes

• Feature a comprehensive appendices which is an invaluable reference guide to your rights and allowances

Who will benefit from this Report?

• Financial directors and managers
• Business owners
• Accountants
• Tax planning advisors
• Tax trainees

Content

1 Income from companies

• Dividends or salary?
• Implications of the ‘Arctic Systems’ case
• Benefits in kind
• Termination payments
• Employee share schemes

2 Savings and investment schemes

• Enterprise Investment Scheme
• Venture Capital Trusts
• Community Investment Tax Relief
• Tax-exempt savings income

3 Sole traders and partnerships

• Loss Relief
• Property income

4 Income tax of individuals

• Allowances
• Extension of basic rate band
• Overseas income

5 Corporation tax

• Losses
• Groups
• Purchase of a company’s own shares
• Substantial shareholding relief
• Corporate Venturing Scheme

6 Capital allowances

• Plant and machinery – general principles
• Cars
• First-year allowances
• Short-life assets
• Industrial buildings allowances
• Disclaiming capital allowances

7 Capital gains

• Basic principles
• Taper relief
• Assets owned before 1 April 1982
• Annual exemptions
• Transfers between spouses
• Capital losses
• Principal private residencies
• Reliefs
• Chattels

8 Inheritance tax

• General principles
• Taper relief
• Exempt transfers
• Reliefs
• Domicile
• Interaction with Capital Gains Tax

9 Trusts

• Interest in possession trusts
• Discretionary trusts
• Accumulation and maintenance trusts
• Charitable trusts
• Overseas trusts
• Business Property Relief and trusts
• Comparison of trusts

10 Valued added tax

• Registration
• Land and buildings
• Special schemes

APPENDIX

• Income Tax – personal and married couple’s allowances
• Income Tax – rates and bands
• Gift Aid – limit on benefit received by donor
• Cash equivalent of company car 2005/06 to 2007/08
• VAT – fuel scale charge
• Corporation Tax – rates and bands
• Capital Gains Tax – annual exemption
• Capital Gains Tax – taper relief
• Inheritance Tax – nil rate band

The author

Peter Hughes, M.A. (Oxon), A.C.A., is a Chartered AccountantHaving qualified in a vibrant Liverpool City Centre practice, he worked for a time in property management before setting up his own consultancy in 2003, based initially in Birkenhead and then, since 2008, in York.

He writes and presents seminars on taxation and other subjects including International Financial Reporting Standards, Company Law and Employment Law, and he advises private clients in these matters. Details of the seminars can be found at www.uktrainingworldwide.com. He has a wide experience of advising small and medium-sized businesses on the tax implications of their business decisions.

CPD

Thorogood legal reports are accredited by The Solicitors Regulation Authority (CPD reference DVQ/THPU) for continuing professional development as distance learning education.

NB: Solicitors may claim up to 75% (12 hours) of their annual CPD requirement by undertaking distance learning education.

For more information see The Solicitors Regulation Authority

 

Certificate of completion

Upon reading this publication participants are invited to undertake a final assessment in the form of an on-line multiple choice paper. Upon passing, a certificate of completion will be made available to you, which can be included as part of your CPD requirements should you consider it relevant to your professional development needs.