Tax and Business

Election to carry back earn out lossIf you sell a business which includes an earn-out arrangement, e.g. the sale price is wholly or partly deferred and paid depending on the profits made by the purchaser's company after the sale, you must estimate th... Read more

Claim for special reliefIf you fail to submit a tax return HMRC may estimate the tax payable and notify you of this on determination notice. The tax determined cannot be appealed against and is legally enforceable. The only way to overturn the deter... Read more

Election to transfer stock at less than market valueWhen an unincorporated business is transferred to a company with its stock and work in progress these are deemed to be transferred at net realisable value, broadly, the amount it could be sold for t... Read more

Failed potentially exempt transfer - fall in value claimGifts between individuals are potentially exempt transfers (PETs) for IHT purposes. This means that there's no IHT to pay at the time, but if you die within seven years the full value of the ... Read more

Election to transfer assets at written down valueWhere you transfer your sole trader or partnership business to a company, plant and machinery or other tangible fixed assets are often transferred too. Strictly, these assets have to be transferred at ... Read more

Election for a period of grace to apply to FHLsWhere you own a property which you let furnished as holiday accommodation it can qualify for preferential tax treatment where various conditions are met.When can you use the election?To count as an FLH t... Read more

Election to disapply incorporation reliefWhere you transfer your sole trader or partnership business to a company in which you own shares, often referred to as incorporating your business, it counts for capital gains tax purposes as if you had sold i... Read more

Election to average occupation of FHLsIf you let a property as furnished holiday accommodation it qualifies for preferential tax treatment if various conditions are met. One condition requires that the property is let for a minimum number of days eac... Read more

Election for business asset disposal relief to apply to QCBsWhen you sell a business the purchasing company might offer to pay you with loan notes. This is a loan arrangement but in the form of a security, i.e. like shares. The loan notes pay interes... Read more

Payrolling benefits in kind letter to employeeHMRC usually collects tax on benefits by adjusting an employee's code number so that extra tax is collected, through the PAYE system, each time they are paid salary. Payrolling achieves the same result but... Read more