Taxation Planning Services
JERROMS CORPORATE FINANCE
Taxation Planning Services
In addition to fiscal valuations for tax purposes Jerroms Corporate Finance can help you to plan your capital and income strategy to minimise your future liabilities to the following potential tax liabilities:
- Capital Gains Tax
- Inheritance Tax
- Corporation Tax
- Income Tax
- Stamp Duty
- Overseas Taxation
JERROMS CORPORATE FINANCE
The acquisition process offers up a unique (frequently the only) opportunity to structure the new organisation to optimise its tax planning advantages. Questions like where the company will be located for tax purposes, revenue recognition policies, how shareholdings are structured, voting rights, dividend options and many more are often matter’s that are best agreed at the outset of the new life of a venture.
Jerroms can assist with the options appraisal and the advantages/disadvantages of each of the choices. It may be a cliché but it is often the case that you will only have one opportunity to get these things right from the outset.
JERROMS CORPORATE FINANCE
Capital Allowances are a form of tax relief given in place of depreciation (which is not allowable for tax purposes) on qualifying items of plant and machinery.
This extends to many fixtures and integral features in a commercial building (and some larger residential ones) such as the plumbing, electrics, security system and fire alarms to name a few.
Whilst claiming allowances on the movable items (machinery, vehicles etc) is nothing extraordinary, many are unaware they are entitled to claim a proportion of the purchase consideration of a property. This is allowed because the purchase expenditure was deemed to have been in part for the fixtures in place at the time.
Furthermore, due to the difficulties of accurately valuing systems imbedded in a property and the maze of case law in this area, allowances are often inaccurately assessed and processed even when taxpayers are aware of their right to claim. This means that many businesses are claiming only a portion of the expense that is available to them.
JERROMS CORPORATE FINANCE
One of the least understood form of taxation is Capital Gains Tax and like most forms of taxation some timely and careful tax planning can mitigate the exposure to this form of taxation.
This is especially important if you are contemplating the sale of your business or making an investment into an asset that may yield a capital gain (for example equity shares).
Jerroms Corporate Finance can help you with your planning to potentially reduce your exposure to this form of taxation. We offer help and advise on the following:
- Annual Exemptions and their optimum use
- CGT tax planning and the engagement of spouses
- CGT tax planning and pension contributions
- Loss Relief(s)
- CGT Deferrals
- Venture Capital Trusts (VCT)
- Entrepreneurs Relief (ER)
- Enterprise Investment Scheme (EIS)
- Seed Enterprise Investment Scheme (SEIS)
The reliefs for Venture Capital Trusts (VCT), the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) are similar in many respects, but there are some significant differences. The table below highlights the main reliefs.
Further information on each type of investment can be found in our Equity Finance section.
| VCT | EIS | SEIS | |
|---|---|---|---|
| Annual investment limit | £200,000 | £1 million* | £100,000 |
| Income tax relief for subscribers | 30% | 30% | 50% |
| Clawback if held for less than | 5 years | 3 years | 3 years |
| Reinvestment relief period | |||
| - before gain made | N/A | 1 year | Same tax year |
| - after gain made | N/A | 3 years | |
| Tax free dividends? | Yes | No | No |
| Tax free capital gains | Yes | Yes (after 3 years) | Yes (after 3 years) |
| Tax relief for losses | No | Yes | Yes |
| IHT business property relief? |
JERROMS CORPORATE FINANCE
The sale of a company almost always gives rise to some form of potential capital gains tax liability. Jerroms Corporate Finance can help you with your planning to potentially reduce your exposure to this form of taxation.
We offer help and advice on the following:
- Annual Exemptions and their optimum use
- CGT tax planning and the engagement of spouses
- CGT tax planning and pension contributions
- Loss Relief(s)
- CGT Deferrals
- Venture Capital Trusts (VCT)
- Entrepreneurs Relief (ER)
- Enterprise Investment Scheme (EIS)
- Seed Enterprise Investment Scheme (SEIS)
JERROMS CORPORATE FINANCE
A fiscal valuation (a fiscal valuation refers to a valuation for tax purposes) will be required for company owners, directors and key employees where companies choose to introduce any of the following:
- Share Allotments to Employees
- Enterprise Management Incentives (EMI) share schemes
- Other approved and unapproved share option schemes
- ESOP trusts
- Phantom Share Schemes
We can help you to consider the pros and cons of various valuation options, advise you upon the impact that certain employee restrictions/rights (especially rights relating to departing employees) will have upon the likely value and advise you on the possible view that HM Revenue & Customs will take on the subject of valuation.
We will prepare the case to be presented to HM Revenue & Customs for the preferred/chosen valuation, negotiate the valuation with HM Revenue & Customs (Shares and Asset Valuation office) and work with you to secure the best possible compromise. We can also advise you on the difference between ‘restricted’ and ‘unrestricted market value’
JERROMS CORPORATE FINANCE
R&D Tax Credits are an HMRC UK tax incentive designed to encourage companies to invest in innovation. They give your business the opportunity to claim back a proportion of your R&D expenditure as tax credits, which can reduce your tax bill or increase taxable losses.
Jerroms has a dedicated team of R & D Tax Relief experts to help maximise and increase the robustness of your claim.
JERROMS CORPORATE FINANCE
We provide independent, objective and expert fiscal (tax) valuations, where these are required for the following purposes:
- Inheritance Tax valuations
- Estate planning with trusts and wills
- Employment Related Securities
- Capital Gains Tax base cost valuation
- Pre-sale or pre-flotation tax planning
- Group re-organisations and demergers
- Utilisation of exemptions and reliefs
- Goodwill of sole traders and partnerships
JERROMS CORPORATE FINANCE
A Venture Capital Trust or VCT is a tax efficient UK investment scheme designed to provide Venture Capital for small expanding companies, and income (in the form of dividend distributions) and/or Capital Gains for investors. Investors enjoy up to 30% income tax relief on investment that they make into the trust (total investment is presently capped at £200k for each tax year), exemption from income tax on dividends received and an exemption from tax on capital gains (providing the shares are held for at least 5 years).
VCT is one of a number of UK tax schemes that are intended to encourage investment into the equity capital of risky, early stage, UK SME’s. Two of the other better known schemes are the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS).
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We offer an initial consultation free of charge which gives us the chance to meet and discuss your needs, with no obligation.
Corporate Finance in Solihull
0121 693 5000
Services
Jerroms is a trading style of Jerroms Business Solutions Limited 08923059, Jerroms (Bromsgrove) Limited 08433008 and Jerroms Corporate Finance Limited 12112183 .
Registered office for each of these companies is: Lumaneri House, Blythe Gate, Blythe Valley Park, Solihull, B90 8AH