“Larger international groups of companies need to be aware of the relatively new corporate interest restriction rules.
Companies that may be affected must ensure they have assessed the impact of the changes and complied with reporting obligations to avoid unexpected tax liabilities and penalties.”
“With income tax rates of up to 46%, using your Capital Gains Tax annual exemption of £11,700 as an “income replacement” can be great planning.
In conjunction with your investment advisors, determine whether tax free capital gains can be secured to supplement your income.”
“With careful planning, and utilisation of reliefs and allowances available, there are ways to mitigate capital gains tax liabilities.
If you are intending on making a capital disposal, discuss this with your tax advisor in advance to ensure that the disposal is carried out as tax efficiently as possible.”
“Personal tax payments are due on 31 January and 31 July, and are typically based on what happened in the prior year.
If you have a major change in circumstances such as falling profits, cessation of business or pension contributions, then consider speaking to your tax advisor about whether these can be reduced.”
“Many businesses have valuable assets such as land & buildings, intellectual property, investments and cash which they would prefer not to subject to business risk.
Should your business be restructured to ensure that your key assets are ring fenced away from trading risk? Discuss this possibility with your tax advisor.”
“Under new rules from 6 April 2019, Capital Gains on the sale of UK land or property are taxable in the UK regardless of an individual’s residence or domicile status.
Speak to your accountant before selling as any disposal needs to be reported to HMRC within 30 days of conveyance.”
“Whilst tax might be one of the considerations behind a business restructure, it should not be the sole focus.
Non-tax implications should be considered as you don’t want to end up in a position where poorly planned and implemented tax planning restricts how you currently operate your business.”
“With the current restrictions on deducting loan interest from your rental income, now is a good time to review the overall structure of your debt.
Together with your financial advisory team, review both business and personal debt to ensure it is best structured for tax mitigation and risk.”
“Many families have significant imbalances between the earnings of spouses, and potentially other family members.
In conjunction with your tax advisors, ensure, where possible, that the earnings of spouses are equalised and consider using the allowances of children too.“
“Retaining highly skilled staff is a priority for businesses. Using share options as an incentive might provide you with a key difference to your competitors.
Discuss the possibility of share options with your tax advisers to determine whether these can be used to reward loyal team members.”