Enterprise Investment Scheme (EIS)
The Enterprise Investment Scheme is designed to help smaller higher-risk trading companies to raise finance by offering investors, who subscribe for new shares in those companies, a range of tax reliefs. How does a company qualify as an EIS company? To qualify for EIS investment, a company must meet various requirements, with the following being…
READ MOREBranch profits exemption
The exemption The basic rule of UK corporation tax is that a UK resident company is taxed in the UK on its worldwide profits. This includes profits of any foreign branches, with double tax relief generally being given against the UK corporation tax for any foreign tax paid on the profits of these foreign branches.…
READ MOREInvestors’ relief: A guide to unlocking capital gains tax savings
Investors’ relief can provide capital gains tax relief for investors disposing of shares in unlisted trading companies. It is effectively a gateway for external investors to access the tax benefits available to employees and directors under business asset disposal relief (BADR). Below, we’ll tell you everything there is to know about how investors’ relief can…
READ MOREEnterprise Management Incentive (EMI)
The continued growth and success of your business is dependent on your workforce. It is, therefore, important to ensure that you are recruiting, incentivising, and retaining the right people. A share based incentive scheme can help you to achieve these goals. Share schemes can be split into two broad categories: HM Revenue & Customs (HMRC)…
READ MOREBusiness asset disposal relief
When an individual or trust disposes of an asset at a gain, capital gains tax may be due. In most cases, capital gains tax will be charged at a rate of 20%. However, if business asset disposal relief (BADR) (known as entrepreneurs’ relief prior to 6 April 2020) is available, the rate will be reduced…
READ MORETrivial benefits
Employers can provide their employees with trivial benefits without either they or their employees incurring any tax or National Insurance charges. The following conditions must be met for a benefit to meet the definition of a ‘trivial benefit’: Conditions The benefit must cost £50 or less When considering the “cost” of a benefit, we generally…
READ MOREFinancial planning: summer bulletin 2023
As we sail further into the second half of 2023, it’s time to pause, reflect and closely scrutinise the financial landscape that has been evolving over the year so far. Recent weeks have brought the first glimmers of hope that the tide is turning. Although it is still early, emerging data suggests a potential slowdown…
READ MOREFamily business bulletin: aligning strategy and risk management
Family business, like all businesses, are not immune from what has been labelled ‘perma-crisis’. Over the last few years, disruption to our lives and our businesses has brought many and far-reaching challenges. Reports are coming through citing regulatory, compliance, resource, and supply chains as well as technology and cyber security risks as areas that are…
READ MORESpring Bulletin 2023
As 2023 continues with a pace, and the freshness of spring starts to make way for the promise of a radiant summer (hopefully!), we pause to take stock of the year so far. The year has seen many of the trends of 2022 continue. Cost of living and high inflation has proved stubborn, with interest…
READ MOREFamily business bulletin | April 2023
The most noteworthy area of change for family businesses at the moment comes from the recent Budget announcement. As you will know, the Budget unveiled significant changes to the UK pensions landscape, offering a wealth of opportunities for those who may have previously faced limitations or been entirely precluded from benefitting from further pension savings.…
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