Investors’ Relief – a new tax break for Business Angels

 CGT, Investment Tax  Comments Off on Investors’ Relief – a new tax break for Business Angels
Nov 062016
 

Investors’ relief is a new CGT relief introduced by Finance Act 2016, designed for people who invest in unquoted trading companies without being involved in the management or operation of the business. These people cannot qualify for entrepreneurs’ relief on realising their investment, and so they wouldn’t expect to benefit from the special 10% rate – until now.

This is a tax relief which should be of particular interest to business angels. Although we already have other tax advantaged schemes, such as the venture capital schemes, they are too complicated and hedged with all sorts of rules and regulations. Investors’ relief is far simpler and should prove an attractive alternative for investors.

(This article can be downloaded in pdf format at Academia.edu)

Continue reading »

Finance Bill 2016 – Entrepreneurs’ Relief and Joint Ventures

 CGT, Corporate Tax  Comments Off on Finance Bill 2016 – Entrepreneurs’ Relief and Joint Ventures
Jun 032016
 

Last year, the Government made some changes to the rules on entrepreneurs’ relief, aimed at individuals who use a corporate vehicle to conduct their business. Before the changes, it was possible for the individual’s personal company to trade through a joint venture or partnership and apply “look-through” rules to qualify for trading status. This was stopped, but now, following Budget 2016, the position is being restored in cases where the individual holds a 5% interest in the relevant joint venture or partnership.

However, there are quirks in the new rules. As we shall see, the position has not been restored exactly in the way that one might expect. We shall concentrate on the rules for joint ventures, but the rules for partnerships are similar and give rise to the same issues.

(This article can be downloaded in pdf format at Academia.edu)

Continue reading »