Occasionally normal wisdom seems so obvious, but is really its reverse. Amaze.
What about a good illustration of this within the tax planning arena is the concept that you should pass businesses down to your children.
Let⤙s have a usual picture of grandfather, father, and son. Father may be the business starter, and it has, let⤙s say, an active limited company manufacturing doorbells. As he gets on in age, should he, as conventional wisdom suggests, think about passing the business to his heirs, perhaps with time?
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CGT Tax
You may think there⤙s very little to become done about CGT when the clients are eventually sold. The problem most often found in the real life is that the company shares were acquired for a nominal amount at that time the entity was established, say a few hundred pounds of initial share capital. The organization may certainly be worth several £ millions, not to mention CGT kicks in in the event you choose to spend.
There are things that can be done relating to this situation to avoid penal tax rates. Alan Pink Tax can advise, happily, and with enough forward planning punitive tax rates can be avoided.
Another common issue relates to VAT.
VAT - Business Splitting
It may be very complex - in addition to taking an inordinate time to set up. HMRC hate it and will penalise you whether they can. However the method widely known as ⤽business splitting⤠is still the most popular method of legally escaping VAT. George Osborne, the current UK chancellor from the exchequer, has even, we⤙re sure inadvertently, made things easier within the March 2011 Budget by increasing the VAT registration threshold from £70,000 to £73,000. So how can we make use of the approach to "business splitting" (or, in some instances, perhaps we ought to say, not work)?
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Finally, tax havens!
The truly amazing Escape - Tax Havens for Fun and Profit
Offshore tax havens are the shiny part of tax planning, perhaps, or avoidance should you prefer to use that dreaded term. Places such as the Caymans, Bermuda, and even the Channel Islands, when mentioned, call to the minds the pictures of rich tax exiles lounging on the beach sipping cocktails, being with well dressed waiters. You might not be surprised to hear much of this glamour isnt discovered to be the case in fact!
Anyway, whatever your tax issue, do let us assist you with it.
