Tax Planning

Futureproof your business with TFP’s Flexible Finance Specialists

In 2016, it was estimated that UK citizens overpaid close to £5 billion in tax by not taking full advantage of tax breaks and relief. Recently, the Chancellor has called for a review of the impact of taxation on business owners, with the OTS Business Lifecyle Report examining the impact of tax upon business.

For many SMEs tax planning for business is one of the most challenging aspects for those starting and growing a business. Finance professionals offer a level of expertise which will bring clarity to this complex subject, advising on those fair and legal structures which can mitigate tax and result in future savings.

Tax Structures for Business Growth include:

  • Business Property Relief (BPR) and Agricultural Property Relief (APR) – both BPR and APR give up to 100% relief from Inheritance Tax on the transfer of business assets, either passed on during the person’s lifetime or on their death. The property in question must’ve been held for at least two years to qualify.
  • Capital Gains Tax (CGT) rollover – enable an incorporated business to be transferred to a company in exchange for shares being issued to the business owners, without any chargeable capital gains arising.
  • An Employee Ownership Trust (EOT) – a trust designed to enable employee ownership of shares in the company they work for. Shareholders of a trading company qualify for full relief from capital gains tax on disposals of shares to EOTs, and employees of the company can be exempt from Income Tax on certain bonus payments (if the EOT is over a 50% shareholding).
  • Enterprise Investment Scheme (EIS) – helps companies raise money to grow by offering tax relief to investors who subscribe for new shares in the company. Under EIS, companies can raise up to £5m each year, with a maximum of £12m in the company’s lifetime.
  • Entrepreneur’s Relief (ER) – business owners pay tax at 10% on all capital gains up to a lifetime limit of £10m, when they sell qualifying business assets (such as shares in the business).
  • Gift Relief – enables a capital gain on a gift of business assets to be held over – so that the tax liability is deferred until the individual gifted disposes of that asset.

Here at The Finance People we can match our finance professionals to your exact needs so that you can focus on what you do best. To find out how your business could benefit from tax planning services call us on 0844 589 3912 or email info@thefinancepeopleuk.com and discover how our Flexible Finance Specialists can fulfil your requirements.