The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
These are our brief notes and thoughts on cases published in the last week or so which caught our eye and are likely to be of particular interest to tax practitioners. Full case reports and commentary on most of these cases will be included within our normal reference sources in the coming weeks.
This is a valuation case but it will be of interest to all involved in the taxation of business acquisitions and disposals as it concerns the nature of goodwill and how it should be valued. In particular it looks at the question of property-based goodwill, such as in a pub or nursing home, where the profitability of a business is inextricably tied up with the property from which it operates. Those specialising in valuation will need to read the case but it also has much of interest for all involved in the taxation of businesses.
This is a case about substantial shareholding exception, which applies (broadly) when one company sells shares in another company it owns. The normal rule is that the shares must have been owned for at least 12 months, but in some circumstances a provision applies to deem a 12-month ownership period where in fact shares have not been owned that long. The tribunal had to determine how those deeming provisions applied when there was no pre-existing group. Both HMRC’s and the taxpayer’s interpretations created anomalies and the tribunal ultimately had to decide what Parliament’s intention was when amending the relevant legislation to bring in the sections under discussion. It found in favour of HMRC’s argument and thus denied the relief but there is no denying that the legislation here is not well drafted. Anybody interested in the finer points of statutory interpretation will find much to ponder here.
Share-for-share exchanges are a familiar part of the way in which acquisitions and disposals
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Normal due dateIndividuals are required to pay any outstanding income tax and Class 4 National Insurance, Class 2 National Insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK
Maintenance payments are payments made by a taxpayer to their former or separated spouse for the maintenance of that former spouse or their children. To obtain any tax relief for maintenance payments, one of the couple must have been born before 5 April 1935 and the payments must be made by virtue
The corporate interest restriction (CIR) essentially limits the amount of interest expense a company can deduct from its taxable profits if the interest expense is over £2 million. The actual mechanics of the CIR calculation are highly complex (the legislation is over 150 pages long) and are
Duty to prepare trust accountsUnder the laws of England and Wales, trustees have a duty to account to the beneficiaries for their financial administration of the trust fund. This duty is established by a substantial body of case law. In the case of Armitage v Nurse, Millett LJ stated:“Every
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.