Corporate double tax relief: a case study
Article Abstract:
UK-resident corporations are subject to tax on worldwide profits, but the income of subsidiary and associate companies overseas will not be taxed unless the income is remitted to the UK in the form of a dividend. However, the parent corporation of controlled foreign companies can be subject to the corporate tax in the area of retained profits. Special rules are provided to relieve corporations from the burdens of foreign taxation. A case study of corporate double tax relief is presented that illustrates that sensible dividend planning, which entails specifying the dividends from the relevant profits, can be used to affect tax savings for firms with substantial income from overseas subsidiaries.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1990
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The share buy-in as an exit route
Article Abstract:
A way of selling shares that can be used for shareholders of a family company is the use of the company as a purchaser of its own shares. Under UK tax law, a company purchase of its own shares is regarded as a distribution. The excess of the price paid over the original subscribed capital is the distribution. A lower tax liability results from the disposal of shares being treated as a distribution. Capital gains treatment can be avoided in a number of ways, including transferring shares to a life interest trust, having shares held by a non-UK resident nominee, and loaning proceeds back to the company.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1991
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Clubs are prone to VAT problems
Article Abstract:
Many private clubs and associations in the UK do not consider themselves to be businesses, but British customs and excise officials believe that clubs do engage in business activities. New laws stiffen penalties for late registration and filing. Customs officials are being especially careful to ensure that clubs do not understate their value-added tax (VAT) liability. Guidelines for helping club treasurers comply with VAT regulations are included.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1987
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