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April Edition of the Innovator

We are delighted to announce that Tax, Tips and Tools 2018/19 is now available!  Comprehensively updated with new and updated tools - and with discounts available to 2020 members and previous purchasers - find out how Tax, Tips and Tools can help you to provide your clients with tax advice which they are happy to pay for. 

Also in this edition are the latest updates on General Data Protection Regulation (GDPR) and Making Tax Digital (MTD).  Both the GDPR and MTD Action Packs are available to Premier Plus and Platinum members in the dashboard 'Action Packs' section.

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LIQUIDATING A COMPANY – IS IT A CAPITAL GAIN?

One of the anti-avoidance measures being introduced by the latest Finance Bill potentially changes the way that certain payments to shareholders will be taxed. This may result in payments following some company liquidations being taxed as dividends instead of capital gain. The Government is concerned that the new higher rates of income tax that have applied to dividends since 6 April 2016 may tempt some shareholder / directors to extract value built up within their companies in a capital form, rather than paying out the retained profits as dividends. This is because capital gains are generally taxed at a lower rate than income, possibly as low as 10% where entrepreneur’s relief is available. For example, a higher rate taxpaying shareholder receiving £100,000 on the liquidation of his company would pay £32,500 (32.5%) if the anti-avoidance applies, whereas...