HMRC Consultation Paper – Withdrawal of Extra Statutory Concessions

 Miscellaneous  Comments Off on HMRC Consultation Paper – Withdrawal of Extra Statutory Concessions
Oct 022014
 

No need to panic. It isn’t all of them, just three.

HMRC “would like to gather evidence from those who have relevant data about the potential impact of withdrawing the following three ESCs”:

The Consultation Paper can be found here, together with details of how to respond. The consultation period ends on 8 January 2015 at 11:45 pm (is anyone going to be in the building to sign for a registered delivery at that time?)

Autumn Statement 2013 Venture Capital Trusts and Share Buybacks

 Tax Avoidance, Venture Capital Schemes  Comments Off on Autumn Statement 2013 Venture Capital Trusts and Share Buybacks
Dec 172013
 

New rules are being introduced to restrict upfront relief, where an investor sells his shares back to the VCT and uses the proceeds to subscribe for another shareholding. In this way, one can have a series of share subscriptions, each one giving rise to tax relief, but with no fresh money actually going into the system and finding its way towards the high growth companies that the VCT scheme is intended to benefit.

Rules to restrict upfront relief in a share buyback situation were first mooted in the Consultation Paper earlier this summer. We now have some draft legislation, so it is now possible to explore in more detail, just how these new rules will apply.

Continue reading »

Sep 032013
 

Share buybacks are an attractive way in which VCT investors can realise their investment. However, HMRC is concerned that this technique is also being used to access another round of tax relief, without necessarily supplying new cash to the businesses for which the scheme was intended to benefit.

So what is the problem, and what is the Government proposing to do about it? Continue reading »

Partnerships and Disguised Employment – turning business owners into employees

 Partnership Tax  Comments Off on Partnerships and Disguised Employment – turning business owners into employees
Jun 042013
 

HMRC has published its Consultation Paper on partnerships, which can be found at the GOV.UK website. There are two areas being targeted:

  • Disguised employment – relating to limited liability partnerships or LLPs only. Partners who are in substance employees, will be treated as employees – leading to a potentially higher tax bills for both “employee” and the LLP;
  • Profit and loss allocation schemes – where profits and losses can be shifted between various members of the partnership to minimise the overall tax burden. It is proposed to stop this from happening.

In this article we shall look at the proposed new rules for disguised employment. Profit and loss allocation schemes will be discussed in a later article. Continue reading »