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TaxationWeb by James Darmon BA ACANational Insurance increases announced in Budget 2002 are likely to make NIC efficient share schemes much more popular with company employees. James Darmon BA, ACA, associate at Forbes Dawson, discusses the impact of the Budget on Revenue approved share schemesNational insurance increases in the Budget have focussed attention on ways to reward employees without the need to pay income tax and national insurance.One of the few remaining havens is to provide employees ... Continue Reading

TaxationWeb by James Darmon BA ACACompanies would appear to be receiving more and more tax concessions. James Darmon BA ACA, an Associate of Forbes Dawson discusses the budget corporation tax changes and highlights a potential area of conflict between the buyer and seller of businesses.The 2002 Budget confirmed two important Corporation Tax changes, designed to improve the UK Economy’s international competitiveness. They are:· No tax on sales of substantial shareholdings; and· Tax relief ... Continue Reading

Taxation by Mark McLaughlin ATII TEPThe settlements anti-avoidance provisions have longer tentacles than is commonly recognised. This article explains how tax problems can arise where services are provided at undervalue to a family business.HOW AND TO what extent can an individual’s contribution of time and effort to a family business constitute the necessary element of bounty, such that the settlement provisions contained in Part XV of the Taxes Act 1988 are deemed to apply? This question has ... Continue Reading

TaxationWeb by James DarmonIndividuals Pre Year End Checklist5 April 2002 is looming fast, but there is still time to save some tax.Many tax allowances are lost if not used by the end of the year. ISAsAnyone over 18 can invest up to £7,000 in an ISA. You can invest up to £7,000 in 2001/2002, and your partner can also make the same investment. ISA income is tax free, and the 10% tax credit on dividends can be reclaimed (unlike other investments).Those aged 16 and 17 can put up to £3,000 into ... Continue Reading

TaxationWeb by James DarmonIndividuals and Companies - Pre 2002 Budget Tax PlanningAt this time of year, tax advisors get out their crystal balls to try to predict what will be in the Budget, and what action taxpayers should take before the year-end on 5 April, in order to secure a better tax position. In recent years this has been made easier by the Government’s pre Budget report, which means that much of the news is already known. The Budget is normally in mid March, before the tax year-end ... Continue Reading

Forbes Dawson by Michael Dawson MA(Cantab) FCA ATIIIn today's uncertain world, how certain can an accountant or tax adviser be how the Inland Revenue will view a particular transaction? Michael Dawson of Forbes Dawson considers the extent to which clearance applications to the Inland Revenue provide comfort.Jeffrey Skilling, the former Enron Chief Executive, is reported to have blamed his ignorance on the Company’s financial troubles on the fact that he was not an accountant! In today’s ... Continue Reading

Tax Journal by Mark McLaughlin ATII TEPWhat are the tax implications if a business receives compensation or damages for the cancellation, breach or variation of a trading agreement? This article considers the position.The Schedule E tax treatment of compensation payments by employers upon termination of an employee’s contract of employment is potentially fairly complex, and much has therefore been written on the subject. But what of the tax implications for a business if a customer pays it compensation ... Continue Reading

Tolley's Practical Tax by Mark McLaughlin ATII TEP10 topical tax planning tips are covered in this article.Partnerships are the business equivalent of matrimony, albeit an alliance recognised in law (Partnership Act 1890) if not in religion. Here are some planning points aimed at helping the tax aspects of such business relationships run more smoothly and predictably than many marriages!1. Fair enough?Has the partnership profit been calculated for tax purposes on a basis that gives a 'true and fair ... Continue Reading

Tax Journal by Mark McLaughlin ATII TEPA tax favoured share incentive scheme was introduced by the Government in Finance Act 2000. This article explores the scheme.The Enterprise Management Incentives (EMI) scheme is a form of tax favoured share option scheme. The legislation is principally contained in Finance Act 2000 Schedule 14. When first introduced, the Government's stated purpose of the scheme was to help 'small, higher risk' companies recruit and retain 'key' individuals to help their businesses ... Continue Reading

Tolley's Practical Tax by Mark McLaughlin ATII TEPTax planning for Valentines Day! Ten tax tips for for young (and old) lovers!It's Valentines Day - a time for couples to show each other how much they care. And if it can be done in a tax-efficient manner, then so much the better! Here, Tolley's Practical Tax offers its more romantic readers the top ten 'tax tips for a twosome'.(1) A romantic dinner for twoRemember that this is supposed to be pleasure, not business, so don't try to claim the cost ... Continue Reading