The Knowledge Centre

Prior to 1 April 2013 it was fairly common for individuals who were both non-UK resident and non-UK domiciled to purchase high value UK residential property through an offshore company, with the shares in that company being owned by an offshore trust. Because the shares were not situated in the UK, there were no UK […]

Employee ownership of companies (or employees owning some shares in the company) is becoming increasingly popular. Here we look at some ways in which this can be achieved. Employee Ownership Trust (EOT) By far, the most popular method of transferring ownership of companies is through an EOT. The attraction for the existing shareholders is that […]

What Is a Family Investment Company? A Family Investment Company (FIC) is a private limited company established to hold and manage family investments, such as property or shares as an alternative to a family trust. Usually, parents will establish the FIC for the benefit of their children and/or grandchildren. What Are the Benefits of a Family […]

Qualifying SMEs can claim tax relief of 230% on eligible R&D spend. This means that for every £100 spend on qualifying costs, you can deduct an additional £130 when calculating profits for corporation tax. Your relief claim will be determined by your corporation tax liability and whether you are profit or loss-making: If the Company […]

There are no special tax exemptions or reliefs for Family Investment Companies (FIC). They are taxed in the same manner as any other company. Generally speaking, the company will pay corporation tax on its profits and chargeable gains for the period. This is currently at 19%… it is scheduled to rise to 25% in April. However, […]

Over the last few years, the Family Investment Company is becoming a relatively popular alternative to the more traditional trust when it comes to wealth and succession planning. However, in my book, there is an awful lot of unnecessary mystery and complexity surrounding the Family Investment Company or FIC. Indeed, the ‘product-isaton’ of this concept […]

An employee share scheme (UK) can be highly effective for an employer in both attracting and retaining the best talent. A well-designed scheme should align employee and company interests. However, careful planning is essential if one also wants to remain efficient for tax purposes and avoid falling out with the tax man. There are broadly […]

For the R&D tax credits to be available, in addition to meeting the SME criteria, your business will also need to: FIRSTLY – Be undertaking qualifying R&D activities. SECONDLY – Have spent on R&D activities. For the purposes of the scheme, R&D is a project which seeks to achieve an advance in overall knowledge or […]

To make a claim for research and development tax relief, your business needs to qualify under one of two R&D schemes. The first provides research and development tax relief for small and medium-sized enterprises. The second, the Research & Development Expenditure Credit (RDEC), is aimed, generally speaking, at larger businesses. The rate of relief available […]