Incorporation: a way round the tax traps

Article Abstract:

Conversion of a partnership into a company in the UK exposes the entity to potentially costly tax implications. There are three areas that their accountants should look into to avoid these tax liabilities. These are income tax, capital gains tax and stamp duty. In the area of income tax, accountants should consider that incorporation during a time of increasing profits will probably result in a substantial income tax burden. As for capital gains tax, accountants should know that any transformation involves transfer of the partners' interest in the goodwill, thereby resulting in potentially significant capital tax gains liability. Finally, accountants should realize that stamp duty can be avoided by eschewing documents altogether. If this is possible, they may consider entering into a written agreement outside the UK although this may expose the entity into greater duties.

Methods, Taxation, Tax planning, Corporations, Corporations, British

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The effect of social change in the U.K

Article Abstract:

Pensions in Great Britain are of three types: government subsidized plans, private plans, or a combination of these. The combination plans enjoy certain tax advantages: employee-employer contributions are tax deductible; pension funds accumulate tax free, as are dividends, interest payments, and capital gains; and lump sum retirements are also tax free. The state-run pension is the State Earnings Related Pension Scheme (SERPS), which employees usually combine with their employers' plan. Private pension funds are approved through the Inland Revenue's Superannuation Funds Office (SFO) as well as the Occupational Pensions Board (OPB). A guaranteed minimum pension (GMP) must be up to SERPS standards. The two basic kinds of pension plans are the defined benefit plan and the defined contribution plan, identical to the American versions.

Social aspects, Employment, Housing, Demographic aspects, Pensions, Retirees, Population, Great Britain

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Incorporation: Muddled Rules Ripe for Change

Article Abstract:

A simple form of company has been considered by government, the professions and incorporators for some time. The ultra vices doctrine should be summoned to account, and articles of association completely reassessed. The current concentration on consolidating the Companies Acts is a convenient juncture to do these things.

Management

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