The Business Lifecycle: Tax Planning for Business Owners

Taper Relief for Inheritance Tax purposes

A short walkthrough

#4 Tax and Legals on Selling a Business, LinkedIn Chat, and Prioritising Happiness! Steven Mather

In this episode of the Talkin' Tax podcast, the worlds of tax and law come together to tackle a crucial topic: the tax implications of selling a business.

Join me as I sit down with Stephen Mather from Steven Mather Solicitors to unravel the complexities of this process.

Together, we'll explore the ins and outs of selling a business from a tax perspective, breaking down the jargon and offering practical insights. Stephen will guide us through the entire journey, sharing his expertise every step of the way.

But it's not all about business. We also explore the importance of work-life balance and finding happiness in our professional journeys. Plus, Stephen shares his secrets to success on LinkedIn, proving that networking can be a game-changer for lawyers.

Stay tuned for an insightful conversation that demystifies tax and law, only on the Talkin' Tax podcast! Hosted by Omar Aswat, founder of ASWATAX.

TEA & TAX Property Incorporation: MASSIVE Tax Benefit

MASSIVE tax benefit - uplift in base costs of underlying properties. Unspoken of benefit that can become extremely valuable especially to those looking to dispose of some of their properties held in a personal capacity in the near future. We are experts in property tax and IHT matters so do get in touch!

What travel expenses can I claim as a landlord?

International Tax: Coming To and Leaving The UK

#3 Capital Gains Tax: 60 Day Reporting & Payment

In this episode, we're diving into the world of capital gains tax reporting!

 

If you're familiar with tax returns, you'll know that capital gains are typically reported on self-assessment forms, especially through the capital gains pages. But did you know there's a 60-day reporting rule for certain disposals of UK land and property?

 

We break down the specifics of when and how to report these transactions to HMRC, ensuring you're up to speed on your tax obligations. From understanding the thresholds triggering reporting to navigating the digital reporting process, we cover it all.

Demerger of a £6million Property Investment Company

Welcome to our ASWATAX blog, where we examine real-world case studies to showcase the intricacies and solutions within the domain of tax advisory. Today, we present a recent success story involving the demerger of a property investment company valued at £6 million, jointly owned by two brothers undergoing a separation in business interests.

 

The Challenge

The scenario presented a substantial challenge: how to effectively divide the assets between the brothers and their respective families without incurring substantial tax liabilities. Without expert guidance, the default route of selling assets to separate limited companies would have resulted in significant Capital Gains Tax implications, alongside complexities in Corporation Tax and Stamp Duty Land Tax (SDLT).

 

Our Approach

Recognising the complexities involved, we conducted a thorough analysis to craft a practical roadmap for the demerger process. Integral to our strategy was securing advance clearance from HM Revenue & Customs (HMRC) to ensure tax neutrality. Collaboration with VAT specialists and legal partners was integral, addressing VAT implications and legal complexities.

 

Key Considerations

Beyond immediate tax implications, our advisory extended to anticipating future inheritance tax implications for both brothers and their families. Valuations, relief applications, and attention to detail were crucial, resulting in a comprehensive 40-page advisory report.

 

The Outcome

Through careful planning and strategic manoeuvring, each brother and their respective family now own 100% of individual companies, enabling them to pursue personalised strategies seamlessly. Notably, the achieved outcome was virtually tax-free, with Stamp Duty Land Tax reduced to a nominal 0.5%, a significant improvement from initial projections.

 

The successful demerger underscores the importance of expert tax advisory in navigating complex corporate restructures.

 

Disclaimer

Please note that while this case study highlights a successful outcome, such transactions entail considerable complexities and individual circumstances may vary. We recommend seeking professional advice tailored to your specific situation.

 

At ASWATAX, we are committed to delivering practical solutions that optimise tax efficiency while mitigating risks.

Linked Investment Company

Benefits and Features of a Employee Ownership Trust ("EOT")