Family Companies - Tax Planning

Objectives

The webinar will review appropriate tax planning advice for small family owned companies and their owners and managers

Key topics

Identifying associated companies

Incorporation comparison – 2024/25

• The background
• Comparative calculations
• Marginal rates of (combined) tax on dividends
• In Scotland
• Looking forward to 2025

Extracting Profits from OMB companies

• Directors’ salary rates
• Dividend taxation
• Dividend v Salary – optimum extraction in marginal rate band
• Target income (gross) £100,000 – marginal small profits rate
• Scottish income tax rates
• Second director – with other income
• Managing income

Other profit extraction thoughts

• Directors’ bonuses
• Payment of pension contributions
• Tax efficient benefits in kind – company car
• Pensions advice

Disposal of the business by a limited company

• Outline considerations
• Corporation tax losses : Carry back 12 months
• Terminal losses in a single company
• Disposal of goodwill subject to intangibles relief

Capital Gains Tax – Disposal of shares

• Business Asset Disposal Relief (BADR) on sale of shares
• Associated disposals – property owned outside the company
• Treatment of deferred consideration
• Purchase by a company of its own shares

Winding up / striking off the company

• Striking off
• Liquidations and the transactions in securities rules
• IHT planning post budget Autumn 2024
• Reductions in Business Property Relief

Who should attend

Partners and professional staff who advise small family owned companies and wish to update or refresh their knowledge.