One of the inevitable consequences of the economic downturn resulting from the Covid-19 crisis is that many companies will need to take steps to restructure debts. This Tax Bite very briefly highlights some of the most important tax points to be aware of on common debt restructuring actions, and some consequences companies may not have thought of. • General rule – debt waivers are taxable – where...
Read moreThe Government has announced further details of the Future Fund which opens today. It is disappointing news for companies and investors who were hoping that the matched investment could be through SEIS/EIS share subscriptions. It has been confirmed that the scheme will only apply to match convertible loans made by investors which of course means that SEIS/EIS share subscriptions will not qualify...
Read moreMuch has been made of the changes announced to entrepreneurs’ relief (ER) in the Budget on 11 March 2020, which have resulted in the lifetime limit being reduced to £1m of gains, as well as wide-ranging anti-forestalling rules being introduced to counteract ER planning. In contrast, Investors’ Relief (IR) has been left untouched and is still subject to the same £10m lifetime limit as when it was...
Read moreWe are getting an increased number of enquiries about EMI options, sometimes linked with a salary sacrifice. Companies are hoping to agree low values with HMRC as a result of the economic uncertainty (we will update you once we have seen how HMRC are responding to these valuation submissions) and we have also seen companies wanting to reduce salaries in return for EMI options – this raises some...
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