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It is not uncommon for shareholders in family and owner-managed companies to waive their rights to receive dividends. In broad terms, a waiver is where a shareholder forgoes (or ‘waives’) their right to be paid a dividend.

Mark McLaughlin looks at dividend waivers for inheritance tax purposes.

Over time, profitable companies will increase their cash and distributable reserves if not paid out to shareholders. To facilitate further growth, these reserves may be invested into non-trading assets. 

Joe Brough looks at the implications on capital taxes for companies holding investment assets.

Readers will be aware that HMRC has long had concerns about research and development (R&D) claims under the small and medium-sized enterprise (SME) regime, particularly those that resulted in a ‘real money’ tax credit payable to the claimant company. This article sets out how HMRC’s approach to R&D claims has changed over the years.

Lee Sharpe considers how HMRC’s campaign against poorly-founded research and development relief claims may be undermining genuine claims and probably government policy. 

Many employers will hold a Christmas party for their staff, or give them a Christmas gift. To prevent an unwanted tax charge from arising as well, it is sensible to take account of the available tax exemptions and, where possible, ensure that Christmas events and Christmas gifts meet the associated conditions.

Sarah Bradford explains how to use tax exemptions to prevent employees from suffering a tax charge on the Christmas party or a Christmas gift.

A company is a separate legal entity, distinct from the shareholders that own it. Consequently, if the directors and shareholders want to use the profits made by the company for their personal use, they will need to extract those profits first. There are various ways in which this can be done; some are more tax-efficient than others.  

Sarah Bradford considers options for extracting profits from a company in a tax-efficient manner in the 2024/25 tax year.

HMRC recently undertook a ‘One to Many’ letter campaign, wherein HMRC’s skilled data analysts undertake to mine nuggets from a huge range of sources to test for omissions or errors in tax returns. 

Lee Sharpe reports on HMRC getting all ‘Nancy Drew’ with its sleuthing over company reporting and shareholders’ dividend income returns. 

Some company shareholders may either be unaware or have forgotten about a relatively unknown capital gains tax (CGT) relief that offers a reduced CGT rate of only 10% on qualifying gains of up to £10m during their lifetime, if certain conditions are satisfied.  

Mark McLaughlin highlights a relatively unknown and infrequently used but generous capital gains tax relief.

Owner-managers can spend a significant amount of time and energy building a successful and profitable trading company.

Joe Brough looks at tax issues for business taxpayers and their tax advisers when a company is coming to an end.