Introducing our Directors: tax planning toolkit for 2013/14
This year's toolkit is like all our maintained guides a rolling planner. This means we add to it when we find practical points that will interest you. Bookmark the guide and if you have registered for Nichola's SME Tax Web-update we will notify you when we make updates.
The Finance Act 2013 introduces some significant changes to director's tax and the 2014 Finance Bill adds more. Our Director's toolkit is available to our subscribers, click here to access our index to director's planning guides, or scroll down to explore the contents of this year's toolkit.
Directors: tax planning toolkit: contents
At a glance: recent significant tax changes and proposals from April 2013
- Employee Shareholder share scheme
- Director's loan repayment restrictions
- Disincorporation relief
- A cap on unlimited tax reliefs
- SEIS relief
- Introduction of the General Anti-abuse rule (GAAR)
Proposed measures from April 2014
- LLP and close company combinations: consultation on new measures to tackle abuse benefits using loans and to tackle perceived disguised employment.
- Reform of close company loan to participator rules
- Pensions: lifetime allowance reduced from £1.5m to £1.25m.
Director's essentials:
- Setting optimal salary levels
- Planning to avoid higher and marginal rate tax.
- Pay, dividends and basic-rate taxpayers
- Income and asset splitting
- Joint property - income splitting
- Directors and Employee Shareholder Shares
- Loans to participators (directors): anti-avoidance measures from 20 March 2013
- General planning points on director's loans:
- Loans from directors
- Pension contributions
- Directors and tax compliance
- Unlawful dividends
- Employee benefit trusts (EBTs) and disguised remuneration
- Tax planning with business combinations (will I pay less tax if I trade via a LLP/Ltd combination)
- Trading status
- Directors and succession planning
- New: disincorporation Relief
- New measures: for purchase of own shares .
- Cap on unrestricted income tax relief
- Income tax share loss relief in negligible value claims.
- Income tax relief on qualifying loan interest
- Trading status and Holiday Lettings
- Renting commercial property to the company
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The Companies Act 2006: purchase of own shares, purchase of own shares out of capital, purchase by instalments and a company share purchase into treasury.
- New employee shareholder trusts: undergoing consultation but expect tax breaks for purchase of controlling shareholdings by employees from 2014.
Links:
Directors: tax planning toolkit 2012/13 A checklist of essentials bringing together topical and unique tax planning points and pitfalls (many of these picked from our Virtual Tax Partner support service).
Index to directors' tax planning guides
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