CAPITAL GAINS TAX - 29.11.2023
How to transfer a business to a company tax efficiently
Anti-avoidance rules prevent business asset disposal relief applying on capital gains made from transferring goodwill from an unincorporated business to a company. But it’s still possible to achieve a 10% tax rate. How’s it done?
TAX CASES - 23.11.2023
Was share exchange mainly for avoidance purposes?
Wilkinson v HMRC. Mr and Mrs Wilkinson (W) owned almost 60% of the shares in P Ltd. The company was sold to a third party company for £130 million in 2016, for a mix of cash and loan notes. However, shortly before the sale, their three daughters were gifted shares in P Ltd. The daughters received loan notes and B shares, but no cash. They were also made directors of a subsidiary company. They sold the loan notes and shares a year later and claimed entrepreneurs’ relief (ER) on their gains. HMRC raised a discovery assessment, cancelling the ER claim on the basis that the exchange had tax avoidance as a main motive. W appealed. ...
CAPITAL GAINS TAX - 14.11.2023
What can you deduct from capital gains?
The First-tier Tribunal (FTT) recently ruled on a dispute regarding what should be deducted when working out a capital gain. The FTT’s decision might seem surprising but was it correct?
PROFIT EXTRACTION - 14.11.2023
Pros and cons of charging your company rent
If you own your business’s trading premises, charging rent can be a good way to extract income. The trouble is it can increase any capital gains tax (CGT) payable if you sell the property. Can the income tax saving justify the extra CGT?
CAPITAL GAINS TAX - 26.10.2023
Private residence relief - when does home ownership begin?
A couple bought a plot of land and built a new home on it. When they sold it HMRC assessed them for capital gains tax. They appealed and won. HMRC disagreed with the ruling and referred it to the Upper Tribunal (UT). What was the outcome?
CURRENCY GAINS - 25.10.2023
Fluctuations in FX rates: the tax implications
One of your clients recently sold a property located overseas. They are aware that the fluctuations in currency exchange rates need to be accounted for, but are unsure about how to treat costs relating to the overseas mortgage settlement. What can you advise?