,1. Business Media
2. Tax – Individuals
3. Company Formation
4. Company Procedure
5. Company Constitution
6. Drafting
7. Share Allotment
8. Debt Finance
9. Business Accounts
10. Directors
11. Internal Disputes
12. Employment
13. Returning Value to Shareholders
14. Acquisitions – Financial Assistance
15. Acquisitions – Contractual
16. Corporation Tax
17. Insolvency Procedures
18. Investigating Directors and Challenging
Transactions
19. Close Companies
, 1.BUSINESS MEDIA
Sole Trader Partnership LP LLP Company
Statute Partnership Act Limited LLP Act 2000 Companies
1890 Partnerships Act 2006
Act 1907
Liability Unlimited Unlimited Unlimited Limited to Limited to
(GPs), Limited contribution investment
(LPs)
Legal status n/a n/a n/a Separate legal Separate
entity legal entity
No. of 1 2 2 2 1
people
Start-up n/a n/a n/a Yes Yes
expenses
Publicity and None None Register at CH Register at CH Most
disclosure On-going filing disclosure
reqs and
regulation
Managemen ST Partners General Members Directors
t Partners
Financing Restricted Restricted and Restricted and 3rd parties 3rd parties
and expensive expensive more willing to more
expensive contract willing to
(floating contract
charge) (floating
charge)
, 2.TAX – INDIVIDUALS
Tax
Income Tax
Total Income: Non-savings, savings, dividends
Net Income: Total Income – tax reliefs (interest paid on partnership loan/pension scheme
contributions)
Taxable Income: Net income – personal allowance
£12,500
Reduced for net income above £100,000: 12,500 – (net income - 100,000 divided by 2)
None over £125,000.
Personal Savings Allowance:
£1000 if TI < £37,500.
£500 if TI between £37,500 - £150,000,
Non-Savings: Taxable income – savings – dividends
Savings: - personal savings allowance
Dividends: First £2000 at 0%
Tax Rates
Taxable Income Tax Rate Dividend Tax Rate
£0-£37,500 20% 7.5%
£37,501 - £150,000 40% 32.5%
Over £150,000 45% 38.1%
Tax
Capital Gains Tax
Exclusions:
Principal private residence
Cars for private use
Moveable assets with a life < 50 years
Investments
UK Sterling for family’s personal use
Disposals between spouses
Disposals to charities
NB: Disposals between connected persons, at undervalue and as gifts are deemed to have received
the market value of the asset.
Calculation
Net sale proceeds = Sale proceeds – disposal expenditure
Total Chargeable Gain = Net sale proceeds – initial expenditure – subsequent expenditure
, Taxable Chargeable Gain = Total chargeable gain – carried forward losses – annual exemption
(£12,000)
TI <£37,500 but added gains Gains in unused basic band at
exceed threshold 10% and rest at 20%
< £37,500 Taxable Income + Total 10%
Taxable Chargeable Gains
> £37,500 Taxable Income + Total 20%
Taxable Chargeable Gains
Entrepreneurs’ Relief
10% tax rate where disposal is of shares in a trading company.
Must have been trading for two years
Shares must have been held for two years
Person disposing of shares must have been an officer/employee for two years and held 5%
voting shares and entitled to 5% profits/assets distributed
Investors’ Relief
10% tax rate for investors in unlisted trading companies who hold their shares for three years.
When disposing of fully paid ordinary shares.
2. Tax – Individuals
3. Company Formation
4. Company Procedure
5. Company Constitution
6. Drafting
7. Share Allotment
8. Debt Finance
9. Business Accounts
10. Directors
11. Internal Disputes
12. Employment
13. Returning Value to Shareholders
14. Acquisitions – Financial Assistance
15. Acquisitions – Contractual
16. Corporation Tax
17. Insolvency Procedures
18. Investigating Directors and Challenging
Transactions
19. Close Companies
, 1.BUSINESS MEDIA
Sole Trader Partnership LP LLP Company
Statute Partnership Act Limited LLP Act 2000 Companies
1890 Partnerships Act 2006
Act 1907
Liability Unlimited Unlimited Unlimited Limited to Limited to
(GPs), Limited contribution investment
(LPs)
Legal status n/a n/a n/a Separate legal Separate
entity legal entity
No. of 1 2 2 2 1
people
Start-up n/a n/a n/a Yes Yes
expenses
Publicity and None None Register at CH Register at CH Most
disclosure On-going filing disclosure
reqs and
regulation
Managemen ST Partners General Members Directors
t Partners
Financing Restricted Restricted and Restricted and 3rd parties 3rd parties
and expensive expensive more willing to more
expensive contract willing to
(floating contract
charge) (floating
charge)
, 2.TAX – INDIVIDUALS
Tax
Income Tax
Total Income: Non-savings, savings, dividends
Net Income: Total Income – tax reliefs (interest paid on partnership loan/pension scheme
contributions)
Taxable Income: Net income – personal allowance
£12,500
Reduced for net income above £100,000: 12,500 – (net income - 100,000 divided by 2)
None over £125,000.
Personal Savings Allowance:
£1000 if TI < £37,500.
£500 if TI between £37,500 - £150,000,
Non-Savings: Taxable income – savings – dividends
Savings: - personal savings allowance
Dividends: First £2000 at 0%
Tax Rates
Taxable Income Tax Rate Dividend Tax Rate
£0-£37,500 20% 7.5%
£37,501 - £150,000 40% 32.5%
Over £150,000 45% 38.1%
Tax
Capital Gains Tax
Exclusions:
Principal private residence
Cars for private use
Moveable assets with a life < 50 years
Investments
UK Sterling for family’s personal use
Disposals between spouses
Disposals to charities
NB: Disposals between connected persons, at undervalue and as gifts are deemed to have received
the market value of the asset.
Calculation
Net sale proceeds = Sale proceeds – disposal expenditure
Total Chargeable Gain = Net sale proceeds – initial expenditure – subsequent expenditure
, Taxable Chargeable Gain = Total chargeable gain – carried forward losses – annual exemption
(£12,000)
TI <£37,500 but added gains Gains in unused basic band at
exceed threshold 10% and rest at 20%
< £37,500 Taxable Income + Total 10%
Taxable Chargeable Gains
> £37,500 Taxable Income + Total 20%
Taxable Chargeable Gains
Entrepreneurs’ Relief
10% tax rate where disposal is of shares in a trading company.
Must have been trading for two years
Shares must have been held for two years
Person disposing of shares must have been an officer/employee for two years and held 5%
voting shares and entitled to 5% profits/assets distributed
Investors’ Relief
10% tax rate for investors in unlisted trading companies who hold their shares for three years.
When disposing of fully paid ordinary shares.
