DON'T let the Inland Revenue have two bites at the cherry, was the message at Smith & Williamson's Business Tax Club held in Salisbury last month.
Andrew Lines, a tax partner at the Salisbury office, discussed simple company group structures and identified where there might be a potential double charge to tax.
For instance, a holding company that owns a subsidiary company might sell the subsidiary and might suffer tax on its capital gain.
If the proceeds of the sale were then distributed to shareholders, a second charge to tax could arise.
He explained ways to get around this problem provided that planning at an early stage occurred.
Potentially, the rate of capital gains tax for business assets can be as low as 10 per cent, compared with 30-40 per cent and possibly even higher.
Other topics covered were tax implications of trading overseas and industrial buildings and capital allowances.
Smith & Williamson's next Business Tax Club will take place in February/March 2002, with three talks, each lasting 10-15 minutes and covering tax relief on contaminated land, the new regime for company cars, and pensions for business people.
For further information on Smith & Williamson, visit the website at www.smith. williamson. co.uk
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