Corporation Tax Planning

1. Tax Efficient Remuneration
2. Specialist Trusts
3. Company Pension Contributions
4. Pre Year End Tax Planning
5. Sideways Loss Relief

Tax Efficient Remuneration

It is important to extract income from whatever vehicle you are trading through as tax efficiently as possible. This will normally involve some form of dividend planning. However with the advent of new income shifting rules next year the need for review and care when planning, especially when husband and wife are shareholders is particularly important. 

Our Tax Efficient Remuneration Survey includes an examination of the most appropriate structure and implementation of that structure. 

Specialist Trusts

This type of planning comes in two forms. The most advantageous creates a corporation tax deduction and allows income to be taken tax efficiently also. Minimum thresholds apply. Companies must be trading and in the year of planning have the lower of £100,000 taxable profits and £100,000 cash. 

Company Pension Contributions

Often the simplest and most popular form of Corporation Tax Planning. This is because there are generous thresholds for company contributions. There is also the opportunity to make in specie contributions of company assets. This enables a contribution to be made without having cash available. There is an added benefit in that the asset in question is often removed from the business risk. 

Pre Year End Tax Planning

Much planning can not be done retrospectively. Hence the need for a pre year end planning review to ensure that opportunities are utilised before it is too late. Often the planning is agreed up to two years in advance, hence the need to undergo a planning process in good time.

Sideways Loss Relief

A mechanism for a company to obtain a corporation tax deduction with a relatively low cash input. Thresholds apply. Taxable profits must be over £1m and cash availability of over £100,000.