Why is recording a loss good tax planning? When it suits HMRC it will rely entirely on the figures shown on your company’s tax return. A mistake might therefore result in extra corporation tax. A tribunal recently considered this point. What lessons can be learned from...
When is a loss not a loss for tax purposes? A First-tier Tribunal case highlights the importance of demonstrating that a business is being operated on a commercial basis. How can you protect clients who make repeated losses from a potential assessment? COMPONENTS OF A BUSINESS Where a...
Borrow from your company, but avoid the tax charge If you borrow from your company and don’t repay the debt within a set time it will have to pay extra corporation tax. The good news is there’s a legitimate way to avoid it without repaying the...
You signed a contract to sell a property on which you’ve made a capital gain. You’ve resigned yourself to paying a large tax bill, but a friend says that you could reduce it by transferring a share of the property to your spouse. Is he...
HMRC’s approach to private residence relief (PRR) is increasingly aggressive, especially where second homes are concerned. In what situations are your clients entitled to private residence relief and how can you help them improve their chances of a successful claim? MULTIPLE RESIDENCES AND TAX The number of...
With a new dividend tax regime coming in on 6 April 2016, some companies may be better re-structured as unincorporated businesses. In some cases disincorporation by 31 March 2018 might be the best option. How can this be done tax efficiently? THE ATTRACTION OF DIVIDENDS Many small companies...
BPR trouble for cash rich companies A special tax break means that the value of your business will usually escape inheritance tax (IHT), but not if it holds too much cash. How can you improve your chances of qualifying for IHT relief? IHT-free assets If you’ve built up...
What’s the latest from the Office of Tax Simplification? The Office of Tax Simplification is examining the alignment of income tax and NI and the simplification of small company taxation. How can practitioners engage with the process, and what could be the impacts for tax practices...
Sheltering profit in a company is fine, but keeping it in cash or investments can jeopardise entrepreneurs relief (ER) when you come to sell or wind up the business. Why and what steps can you take to avoid this happening? Company shelter With tax on dividends rising...
I was recently reading about a serial property investor who lived two months in a property which he later sold for a profit and he was refused private residence relief (PRR) by HMRC. He appealed to the tribunal and I look at what the outcome...