planning to avoid or reduce corporation tax

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Planning to avoid or reduce Corporation tax

If you’re looking to avoid or reduce corporation tax, take a look at our corporation tax articles (below).

FREE: Analysis of Sole Trader v Using a Company

One of the key advantages of using a company is that it lets you decide whether you want to withdraw the profits or not.If you choose to leave funds within the business to fund future growth, only cor . . . keep reading

New – Free Corporation Tax Guidance!

Members can access our new Corporation Tax Consultancy Section.

This includes FREE detailed scenario based tax planning Q&A’s. New Q&A’s are to be added to this daily.

When non UK resident companies are within the UK corporation tax regime

Foreign businesses should be able to undertake significant UK activity without triggering tax liabilities but they need to be careful. If not structured correctly they may find that apparently minor contact with the UK triggers an enquiry from HMRC. This article looks at when a foreign company could be within the scope of UK corporation tax and the tax planning opportunities available . . . keep reading

Maximising tax relief on the purchase of business premises

Given the substantial costs in purchasing business property, maximising your tax relief for the expenditure you incur is essential. Following a request from a member in this article we look at maximising tax relief on the purchase of business property. . . . keep reading

The latest on the associated company provisions

The tax implications of having companies that are classed as “associated” are well known, with the reduction in the various corporation tax bands usually being the key disdadvantage. In this article we look at changes to the associated company rules over the last couple of years and the impact of the new “substantial commercial interdependence” requirement . . . keep reading

Liquidating companies in 2012 and extracting cash tax efficiently

The tax treatment of extracting cash from a company on a winding up has changed significantly from 1 March 2012. In this article we look at how the new rules operate and any tax planning opportunities available. . . . keep reading

Using a new offshore subsidiary or a branch in 2012 – how the foreign branch election applies

If you want to do business in another country two of the options you have are either (1)Incorporate a new company offshore and use this to carry out the overseas business, or (2)Establish a branch of the existing UK company and carry out the trade via the branch. This article looks in detail at how a foreign branch of a UK company is taxed in 2012 . . . keep reading

Changes to migrating a company overseas?

Migrating a company overseas can have a number of UK tax benefits. The main benefits are that profits from an overseas trade are outside the scope of UK tax and that most capital gains are also free of corporation tax. Are changes on the way? . . . keep reading

Using offshore companies and protected cell companies to avoid the remittance rules

If you’re looking to avoid CGT, using an offshore company can be attractive, particularly as a non dom. In this article we look at how offshore companies can be used to avoid CGT and the remittance rules. In addition we consider how protected cell companies can be used to avoid CGT . . . keep reading

Tax structuring for international professional services – case study

Many members are interested in the various options for structuring an international professional services business. In this article we look at the income tax, corporation tax and capital gains tax implications of the various structuring options, including using a UK or offshore company. . . . keep reading

Where to incorporate – top 4 jurisdictions for low corporation tax

Although the Government is committed to reducing the rate of corporation tax for UK companies, it will still be significantly higher than the corporation tax levied in some of the low tax jurisdictions. In this article we look at the top 4 countries for anyone interested in corporation tax planning . . . keep reading

Detailed analysis of non resident company investing in UK property – part 2

In this article we continue our tax analysis of using an offshore company to invest in UK property. In particular we look at tax relief for interest (including withholding tax issues and the UK non resident landlord scheme), VAT and SDLT implications. . . . keep reading

When using a UK company can increase your tax bill

By L J HAdnum – 24/02/2012

Much has been written on when you should use a UK company. In fact there are lots of cases when using a Limited Company to carry out your business could save you thousands off your tax bill. However, this is not always the case, and in this article we’re going to run through some of occasions when using a company would lead to a substantial increase in your UK tax liability. . . . keep reading

Detailed analysis of non resident company investing in UK property – Part 1

There are a number of tax benefits for non resident companies investing in UK property. In this article we provide a detailed analysis of the tax regime for a non resident company purchasing UK property and look at the key tax planning opportunities available . . . keep reading

How do you prove an offshore company isn’t associated with your UK company?

Your UK company will be associated with all other companies which are under the control of the same person. This applies whether a company is resident or not. Whilst determining the number of UK companies that are associated is relatively straight forward the lack of information available in many of the offshore jurisdictions can make this difficult if you have offshore companies located in tax havens. This article looks at the impact of a recent case in this area . . . keep reading

Much has been written about the tax benefits of using a company but what if you change your mind and want to go back to being a sole trader or partnership? Well for tax purposes this is known as ‘Disincorporation’ and it’s well worth considering how this would be taxed — particularly as the tax position on transferring assets out of a company is much less favourable than when you’re transferring assets into a company. This article looks at tax planning for a ‘disincorporation’. . . . keep reading

Holding a website offshore to reduce UK tax

By L J Hadnum – 03/02/2012

If you’re looking to set up a website and want to reduce UK tax on the profits generated by that site, one option to avoid tax on the profits is by operating the site from overseas. This article looks at the offshore options to avoid tax on the profits of a website including non residency and using an offshore company. . . . keep reading

Interesting case on the tax treatment of disposal of Goodwill

Determining whether a receipt is taxed as capital gain or income will have a significant impact on the tax treatment. For individuals in particular capital treatment will often be preferred. In this article we look at a very recent case that considered how a receipt for the transfer of Goodwill should be taxed . . . keep reading

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