Tax Planning for Family Companies

This guide looks at many of the tax issues of particular relevance to personal and family companies, both from the perspective of the company itself and the directors and shareholders behind the company. In particular, it explains the corporation tax charge on the company and outlines some tax planning strategies to minimise that charge in a legitimate fashion. It also explains how the company can obtain relief for any losses that it makes. 

The guide also considers the role of the family company as an employer, and sets out the company’s obligations in this role. 

What does the Tax Planning for Family Companies guide cover?

The guide covers:

• Setting up and structuring a new company
  • Deciding on the share structure 
  • Incorporating an existing company
  • Selling assets to the new company 
  • Incorporation relief
  • Capital Allowances
  • Plus More... 
• Corporation tax
  • Determining the accounting period
  • Deductible expenditure 
  • Disallowable expenditure 
  • Pre-commencement expenses 
  • Annual investment allowance 
  • Writing down allowances 
  • The section 455 tax rate 
  • Plus more...
• Relief for losses
  • Offset against profits and gain of the same accounting period 
  • Carrying a trading loss back
  • Carrying a loss forward 
  • Terminal loss relief 
  • Plus more...
• The family company as an employer
  • PAYE
  • National Insurance employment allowance 
  • Student loan deductions 
  • Paying tax and deductions to HMRC
  • Benefits in kind
  • PAYE Settlement Agreements 
  • Plus more...
• Tax efficient extraction of profits
  • Setting the salary level 
  • Extract further profits as dividends 
  • Other ways to extract profits in a tax-efficient manner 
  • Plus more...
• Directors' loan accounts
  • What is a close company?
  • Outstanding director's loans and the section 455 tax charge 
  • Making use of a director's loan
  • Beware a benefit in kind tax charge 
  • Lending money to the family company 
  • Plus more...
• Planning ahead
  • Business asset disposal relief 
  • Business property relief 
  • Plus more...

Take a look inside this report to see further details of what is covered. 

Who is the Tax Planning for Family Companies guide for?

This guide is for those considering whether to start a family company, as well as current directors of family businesses who'd like to read the most up to date tax planning tips and strategies.