Loans to participators


It might, on the face of it, be thought tax efficient for an owner-managed company to pay corporation tax on its profits (at a maximum rate of 25%) and then to lend its post-tax profits to its shareholders instead of paying them salary or dividends (which would be subject to income tax in the recipient’s…


Hybrid mismatches guide


The UK “Hybrid and Other Mismatches” rules were introduced with effect from 1 January 2017 in response to one element of the OECD’s Base Erosion and Profit Shifting (BEPS) initiative. The rules are extremely detailed and complicated, but in outline they are designed to neutralise “tax mismatches” that involve at least one entity that is…


Employee Ownership Trusts (EOT) guide


Shareholders of trading companies are increasingly considering the possibility of selling some or all of their shares to an Employee Ownership Trust (EOT) which will then hold these shares for the benefit of the company’s employees. When implemented carefully and for the right reasons, selling to an EOT can give rise to significant commercial and…


Tax efficient planning for 2023/24


Start planning for the 2023/24 tax year now and get the best out of your money It is always a good idea to review tax planning opportunities to ensure you are maximising allowances and your planning is in line with current legislation. Read our guide for a brief reminder of the key points that should…


Creative sector tax reliefs: video games tax relief


Video games tax relief (VGTR) forms part of the UK government’s strategy to promote and support various creative sectors in the UK through generous tax reliefs. VGTR may be available to a video game development company (VGDC) that develops a qualifying video game. Under the current regime, the relief can increase the amount of expenditure…


Comparison of EIS, SEIS and VCT


Enterprise Investment Schemes (EIS), Seed Enterprise Investment Schemes (SEIS) and Venture Capital Trusts (VCT) are three types of government-backed schemes that aim to encourage investment in small, unquoted companies that are generally perceived to be high-risk investments. Here, we go through what they are and who may consider them. What is EIS, SEIS or VCT?…


Construction Industry Scheme


The Construction Industry Scheme (CIS) was initially introduced in the 1970s to counteract the perceived under-reporting of income by subcontractors in the UK construction industry. The scheme operates, in outline, by imposing a withholding tax obligation on contractors who make payments to subcontractors, thereby protecting against the risk that subcontractors subsequently fail to report and…


Creative sector tax reliefs: film tax relief


Special tax rules apply to determine how the taxable profits of a film production company are to be calculated and how any losses may be applied. A film production company (FPC) may also be eligible for Film Tax Relief (FTR). This relief can increase the amount of expenditure that is allowable as a deduction for…


Creative sector tax reliefs: television tax relief


Television Tax Relief (TTR) may be available to companies that produce high end television programmes, animations, or children’s television programmes. The relief can increase the amount of expenditure that is allowable as a deduction for tax purposes and, if the company makes a loss, allow some or all of that loss to be surrendered for…


Understanding UK Theatre Tax Relief: Rates, criteria and benefits


Some theatre productions in the UK are eligible for Theatre Tax Relief (TTR). In case you’re unaware, Theatre Tax Relief can increase the total expenditure that is allowed as a tax deduction on specific goods or services, and if your company takes a loss, this can be surrendered for a payable tax credit. Theatre Tax…


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