Loans to traders: There’s no guarantee!
The number of capital loss relief claims made in respect of irrecoverable loans to businesses and guarantee payments has seemingly increased significantly since the commencement of the financial crash in 2007/08. Does it qualify? The conditions for claiming capital loss relief on loans to traders are relatively well known. For example, the relief applies to […]
Having a takeout
Earlier this year, a readers’ forum query ‘Company residential property transfer to daughters’ (Taxation, 28 February 2019, page 22) questioned the tax implications of the transfer of residential properties from a company to two daughters of the company’s sole director and shareholder. It is relatively common for assets to be transferred from a company on […]
Having a takeout
Earlier this year, a readers’ forum query ‘Company residential property transfer to daughters’ (Taxation, 28 February 2019, page 22) questioned the tax implications of the transfer of residential properties from a company to two daughters of the company’s sole director and shareholder. It is relatively common for assets to be transferred from a company on […]
Entrepreneurs’ relief: The elephant test
A ‘trading company’ can sometimes be difficult to identify for capital gains tax ER purposes. To make matters worse, the statutory definition is relatively brief. Whilst HMRC’s guidance is helpful in many cases, it is only that – guidance, not legislation, so does not have the force of law. At times, it is necessary to […]
Not clear! ‘Business’ and incorporation relief
The UK tax system is extremely complex. The tax legislation is voluminous and almost impenetrable in parts. There are many ‘grey areas’ resulting in uncertainty for taxpayers and professional advisers. Is that ‘clear’? Fortunately, HM Revenue and Customs (HMRC) is required by law to provide taxpayers with the facility to apply for clearance on the […]
PPR and lettings relief: The clock is ticking…
Apparently, the ‘Doomsday Clock’, which measures the likelihood of a man-made global catastrophe, currently stands at two minutes to midnight. Fortunately, there’s a little more time to plan for a forthcoming restriction to an important tax relief. ‘Doomed’ relief? Most homeowners will avail themselves of main residence relief (commonly known as ‘principal private residence relief’ […]
Investors and entrepreneurs – There’s a (tax) difference!
Individual business owners may be aware that a capital gains tax (CGT) rate of only 10% can apply if entrepreneurs’ relief (ER) is available on qualifying business disposals, up to a lifetime limit of £10 million. A relatively newer and less well-known relief, investors’ relief (IR), also provides for a reduced CGT rate of 10% […]
Investors and entrepreneurs – There’s a (tax) difference!
Individual business owners may be aware that a capital gains tax (CGT) rate of only 10% can apply if entrepreneurs’ relief (ER) is available on qualifying business disposals, up to a lifetime limit of £10 million. A relatively newer and less well-known relief, investors’ relief (IR), also provides for a reduced CGT rate of 10% […]
Trusts: Tax traps to avoid!
The use of trusts is a fairly popular way of passing wealth down generations. For example, an individual (who is resident and domiciled in the UK) may wish to set up a discretionary trust to hold an investment property, to provide income to family members, and ultimately a capital asset that will hopefully appreciate in […]