Nov 252013

The following is an overview of some of the main tax issues that arise when a business is sold. We shall assume in this case that we have a corporate buyer and a corporate seller. We shall also assume both parties to the transaction are subject to UK corporation tax and that the business is a trading operation. Continue reading »

Nov 152013

In our introductory article on REITs, we looked at how the underlying property rental business is taxed, and how the tax position of the fund is effectively transferred to the investors.

In particular, we saw that there is no tax, both on income profits and capital gains at the fund level. The profits are taxed as property income when distributed to the shareholders, while capital gains accrue in the fund, and are only taxed when the shareholders realise their investment.

But what does it take to be a REIT and to qualify for the tax breaks? This is the topic that we explore in this article. Continue reading »

Lease Premiums – capital or income? – a statutory interlude

 CGT, Income Tax, Property Tax, Statutory Interpretation  Comments Off on Lease Premiums – capital or income? – a statutory interlude
Nov 132013

The following is a statutory analysis of the position when a lease of land is granted for a premium. We have already seen how this works in previous articles on the Lease Premium Rules. The first article was about how the rules operate to modify the capital gains treatment of the landlord, and the second article concerned how the landlord could use these rules to his advantage in claiming tax relief for the property.

However, these two articles raise some important questions concerning the nature of the premium and how it is taxed. Why should a landlord receiving a premium be taxed under the capital gains legislation, and a property trader be taxed under the income tax rules? More importantly:

“How does this result come about under the legislation?”

We shall discuss this more fully below. Continue reading »

Venture Capital Trusts Part Two – Who are the investors?

 Investment Tax, Venture Capital Schemes  Comments Off on Venture Capital Trusts Part Two – Who are the investors?
Nov 062013

This is the second in a series of articles on venture capital trusts. In Part One we looked at the tax breaks on offer for those brave enough to risk their capital. In this article we shall take a closer look at the investors – who they are, how they can invest, and what are the strings attached to the investment.

(This article can be downloaded in pdf format in portrait or landscape version at

Continue reading »