Last month Rishi Sunak’s wife, Akshata Murty, was plunged into a tax controversy due to her non-domiciled status in the UK. The Chancellor’s wife was considered to allegedly have avoided paying UK tax on her income and faced a lot of criticism for her decisions. The issue is based on two main aspects; one, that [...]
There are two principal ways to close a solvent limited company; either a voluntary or informal strike-off or through a Members’ Voluntary Liquidation (MVL). It is often believed that an MVL is the most tax-efficient way, but it may not always be the best option, particularly when it comes to how much tax shareholders will [...]
Recently the Bank of England (BoE) reported that total corporate debt had risen by around 6% over the past two years in the UK. Their figures also revealed that small and medium-sized (SME) businesses carried more of the burden – by as much as a third – than larger listed businesses, principally because they were [...]
Suppose you are closing a solvent business through a Members’ Voluntary Liquidation (MVL) process and selling the business’s assets. In that case, you will be liable to pay Capital Gains Tax (CGT) on the profits of all qualifying assets that are sold. However, you may be eligible for tax relief on CGT, which was called [...]
The coronavirus pandemic caused many businesses to close temporarily and many employees were placed on the government’s furlough scheme. The period the business is closed is known as a lay-off and during this time, employees are entitled to receive their normal pay throughout the lay-off. However, some employee contracts have a clause that allows an [...]
The Companies Act 2006 is legislation that governs companies in the UK in just about every way a company is managed, run and financed. It took over from the Companies Act 1985 and was implemented in stages, the last starting in 2009, and provided public and privately run companies in the UK with common corporate [...]
The Insolvency Act 1986 was as law after the Cork Review Committee’s report on Insolvency Law and Practice in 1982. Prior to the report, insolvency issues were dealt with under as many as 50 different Acts of Parliament, such as the Bankruptcy Act 1914, the Companies Act 1948, the Deeds of Arrangement Act 1914 and [...]
As businesses start to emerge from the coronavirus pandemic, the reality of government backed loans, furlough schemes and lost revenue is starting to bite. Couple that with rising energy costs, interest rates going up and inflation predicted to hit 8%, the number of companies struggling with debt is growing. Recent statistics report that in January [...]
If you are personally struggling with debt to the point of insolvency, i.e. your outgoings are much greater than your incoming funds, it may have been suggested to you – or a creditor is forcing the issue – that you enter an Individual Involuntary Arrangement (IVA). An IVA is a legally-binding agreement made between you [...]
If you are a director of a limited company, you have the ability to borrow money from the business, i.e. make a withdrawal, as long as it’s not for a dividend, salary or repayment of an expense, and it’s not money you’ve loaned or paid into the company. Each director of a limited company has [...]
