Draft legislation has just been released for the diverted profits tax, which was recently announced in the Autumn Statement 2014 https://www.gov.uk/government/publications/finance-bill-2015-draft-legislation-overview-documents Effective date The new rules will be effective in respect of profits arising on or after 1 April 2015. 1st Rule The first rule is designed to address arrangements which avoid a UK permanent establishment… Continue reading Diverted Profits Tax
Category: Corporation tax
Pre trading expenses
Pre trading expenses: summary You can get a tax deduction for pre trading expenses incurred upto 7 years before your business started trading. Pre-trading Under CTA2009 s.61, if a company incurs expenses for the purposes of a trade before (but not more than 7 years before) the date on which the company starts to carry… Continue reading Pre trading expenses
Residential property tax planning
Residential property can be a lucrative business, but profits or gains will be subject to tax. In this post we discuss some of the property tax planning options, including using limited companies or LLPs, trading vs investment property, capital gains tax and entrepreneurs relief. Please download the full report on residential property tax planning for full details. Trading stock vs Investment… Continue reading Residential property tax planning
Using a holding company
Holding company Many businesses will structure their affairs by using a group of companies. There will be a parent or holding company at the top, and this will hold 1 or more trading subsidiaries. Advantages of using a holding company There is no tax on dividends from subsidiaries to the holding company, so you could… Continue reading Using a holding company
Use deferred income to save tax
Use deferred income to save tax Sales invoices need to be recognised in the correct accounting period. An invoice can sometimes be deferred when preparing the annual accounts, thereby deferring corporation tax for another year also. If an invoice has been raised prior to the year end it is imperative to analyse any supporting contract or sales… Continue reading Use deferred income to save tax