Ken Moody highlights some confusion over what exactly are ‘distributions in specie’ and outlines some important tax implications. I was asked a question recently about a transfer of shares between a 60% subsidiary to its holding company and whether this would be better structured as a dividend in specie or a distribution in specie. I […]
What’s in a Name? Distributions in Specie Read More »
The transfer of shares may be for various reasons – usually when the owner decides to retire, or at least reduce their involvement in the business. Alternatively, parents may wish their children to have some of the company’s shares to receive dividends, possibly to help fund further education. The transfer can be by gift or
Business Strategies: Transferring Shares to Family Members Read More »
The number of businesses closing down is steadily increasing. Many of those businesses will have staff, therefore the legal and tax position of any termination payment must be considered. Many assume that any amount up to £30,000 is tax free. However, this may not apply to all redundancy payments not least because termination payments will
Tax Implications of Termination Payments Read More »
Companies and self-employed businesses with a turnover exceeding £150,000 a year are obliged to prepare their accounts using the ‘accrual’ basis of calculating profits i.e. recognising the income received and expenses paid on an invoice basis, regardless of whether or when the cash is received. Such a method of calculation may result in some customers
Tax Implications of Writing Off a Bad Debt Read More »
Most directors know that as of 1 April 2023, companies with taxable profits in excess of £250,000 will pay corporation tax at the main rate of 25%. Companies with taxable profits of £50,000 or less will still be charged at 19% and those with profit levels between £50,000 and £250,000 will pay tax at 25%,
Corporation Tax Rate Changes – What are Tax Implications? Read More »
There is no doubt in the factor of productivity when you are earning extra by following the tendency of the side gigs, but be aware of the tax implications of side gigs that will come with it. Many people do not realise that the side gigs and the income stream are important to declare to
What are the Tax Implications of Side Gigs? Read More »
The taxation of profit from furnished holiday lets (FHL) could be termed a ‘hybrid’ of taxes. The operation of a FHL is deemed to be a business and not a property income investment, and as such the usual business income and expenditure accounts are prepared. Benefits of Treatment as a Holiday Let This treatment
Holiday Lets – Tax Implications Read More »
