U.K. NRCs: Why so popular overseas?

Article Abstract:

Under British tax laws, nonresident companies (NRCs) may be exempt from certain taxes. In order to qualify for nonresident status, no part of the firm's central management and control can be located in the United Kingdom. The registered office of incorporation must be located in a U.K. county, but a majority of the directors must reside outside the U.K., and the accounting and the meetings of the firm must take place outside the U.K. While the NRC may be exempt from British corporation taxes, it is not exempt from taxes on income from British sources, nor is it exempt from the tax laws of the host country. Also, the costs associated with doing business abroad may offset tax gains realized by having nonresident status. Details of registration and residency requirements, as well as relevant tax case rulings, are given.

Foreign corporations, Foreign sales corporations, Great Britain

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When it's time to sell the family business

Article Abstract:

Tax planning considerations before, during, and after the sale of a family business are discussed. It is important to begin tax planning as early as possible in the sale of a business, because values are lower when a sale is not imminent, and because early planning can minimize inheritance and capital gains taxes. Both discretionary and charitable trusts must be established before contracts are exchanged if the seller is to enjoy the benefits of those trusts. Sellers can avoid being taxed on deferred considerations by ensuring that no maximum price is defined in the sale. After the sale has taken place, the seller should advise the Inland Revenue by the end of September following the end of the tax year during which the sale took place of the capital gains realized in the sale.

Tax accounting, Tax policy

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Selling a business is a big deal

Article Abstract:

The sale of a family business is a complex and often emotional matter. There are several steps the accountant can take to facilitate the sale of family businesses and to protect themselves against negligence claims. The documentation involved in the sale of a business consists of four parts: the contract, the warranties, a disclosure letter, and a deed of indemnity. The accountant in the sale must strike a balance between the needs of the purchaser, who wants to be assured that the business is in the condition it is represented to be in, and the needs of the vendor, who wants to be assured about that the business is being sold for a fair price.

Laws, regulations and rules, Family-owned businesses, Family corporations

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