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business tax

Pheonix Companies

‘Pheonix Companies’ – Distribution Treated as Income Rather Than a Capital Gain in Certain Conditions

In a private limited company, it is usual for a director to also be a shareholder. Payments made to shareholders are deemed to be income distributions and taxed accordingly. However, payments made to shareholders where the company is being liquidated can be taxed as capital distributions under the Capital Gains Tax (CGT) rules being a

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Conditions And Problems Surrounding the Claim for Incorporation Relief

Conditions And Problems Surrounding the Claim for Incorporation Relief

Businesses become companies for a variety of reasons. Not so long ago it was mainly as a tax planning tool but increasingly the differences in tax rates between the self-employed and a company mean that unless the profit is in excess of approximately £50,000 the increased administration involved with a company may not make it

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