As we continue to feel the economic impact of COVID-19, in this edition, we discuss how some senior employees and shareholders of businesses need to beware of potential tax traps when are offering to waive their agreed salary and dividends to help cashflow. We also consider whether now, while the markets remain unpredictable, could be the perfect time to consider your estate planning options. In other non-COVID-19 related news, we look into informal procedures for estate taxes, generous tax reliefs for high risk investments and more.
Beware of the tax bite on waiving salary and dividends
As businesses continue to feel the economic impact of COVID-19, some senior employees and shareholders are offering to waive their agreed salary and/or dividends to cash flow. We highlight the importance of implementing this properly with the correct documentation to avoid an unwanted tax bite.
High risk investments with generous tax reliefs - The Enterprise Investment Scheme and Seed Enterprise Investment Scheme
In this article, we provide an overview of the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) - the government incentives designed to encourage investment in high risk, small and medium-sized unquoted trading companies.
Executors – Can your estate follow the informal procedure for estate taxes?
There are certain self-assessment rules that apply to personal representatives (PRs). We explore these and the instances where a simplified informal procedure can be adopted, explaining the qualifying criteria for such estates.
Is now the time to make lifetime gifts?
One of the main ways to reduce the inheritance tax (IHT) payable on death is to transfer assets during life to avoid them becoming part of an estate. Now, while the markets remain unpredictable, could be the perfect time to consider your estate planning options.
Trust Registration Service – Are you up to date with the current rules for registration?
In 2017, HMRC introduced the Trust Registration Service (TRS) in order to comply with the fourth Anti-Money Laundering Directive (AMLD). Here, we depict the changes in 5MLD that affect trusts, what to do if your trust is already registered, and what will happen if you fail to comply.
Sharia financing for UK property transactions
The UK property market has historically been seen as a stable and lucrative investment for overseas buyers, many of which have originated from the Middle East. In this article, we discuss why it important to take UK tax advice if you’re considering a Sharia compliant structure to purchase a property portfolio in the UK.