Groups - Key Tax Planning Points

Objectives

The main objective of this course is to provide a refresher of the key tax issues to consider when advising groups of companies.

Delegates will be updated on current tax planning opportunities available to corporate groups.

Key topics

• Taxation of groups of companies
• Group relief for losses (ss 97 – 188 cta 2010)
• Group Loss Relief – the 75% Test
• Amounts Available for Surrender (Debits)
• Overlapping/ Corresponding Accounting Periods
• Effective Use of Losses (Debits)
• Set off of trading losses against total profits (s37 CTA 2010 )
• Group relief for carried-forward losses CTA10 PART5A
• How many associated companies?
• Definition of control
• Substantial commercial interdependence
• HMRC interpretation of “Substantial Commercial Interdependence”
• Operating via divisions rather than separate companies
• Transfers of trade “Hive down”/Up/Across
• Capital gains groups
• Implications
• Capital Gains “De-Grouping” Charge - Section 179 TCGA 1992
• Stamp Duty Land Tax “de – grouping charge”
• Substantial shareholdings exemption
• Meaning of ‘trading company’ and ‘trading group’
• Extract from updated HMRC guidance at CG64095 following Allam case
• Reform of the Substantial Shareholdings Exemption
• Special rules for ‘hive-down’ companies
• Acquiring a loss- making company (loss buying)
• Anti-Avoidance
• Meaning of “Major change” in the business of a transferred company
• “Hive down”/Up of loss-making trade
• Quarterly instalments payments
• Exceptions
• Very Large Companies
• Planning to Avoid QIPs
• Group Payment Arrangements
• Vat group registration
• Meaning of “Control” for VAT Grouping
• VAT Group Registration Procedure
• Consortium relief
• Control of Consortium Company
• Operation of Loss Relief
• Interaction with 75% Group Relief
• “Flow Through” Claims by “Link” Company

Who should attend

Partners and staff in practice who advise groups of companies and need to refresh their knowledge of tax planning opportunities available.

The course would also benefit accountants working in house for groups of companies.