Financing the company ― overview

Produced by a Tolley Corporation Tax expert

Corporation Tax

Guidance

How to raise sufficient finance to commence and continue operating is one of the most important considerations for most types of business.

There are two ways to finance a company; debt finance and equity investment. A fairly obvious sources of financing is bank finance. However there are also several types of tax efficient investment schemes available, such as the enterprise investment scheme (EIS) and venture capital trusts (VCT). In addition, there are a wide variety of tax reliefs and government grants available, which are often a valuable way to increase the cash available to finance the business.

Obtaining tax advice at an early stage to ensure that any potentially relevant reliefs are actually available can help attract and retain suitable investors.

This guidance note explores some of the options available and the relevant tax considerations for each one.

Loans

Most businesses will have to take out a loan of some sort and the tax implications will differ depending on the terms of the loan and the identity of the lender. There are a number of advantages

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Trusts and Inheritance Tax

Transfer of assets to beneficiaries ― legal, administration and tax issues

Transfer of assets to beneficiaries ― legal, administration and tax issuesThis guidance note outlines how assets are transferred to beneficiaries and the tax consequences that flow from the transfer. Whether a payment is income or capital is discussed in the Payments to trust beneficiaries guidance

14 Jul 2020 13:52 | Produced by Tolley Read more

Owner-Managed Businesses

Trade or hobby

Trade or hobbyInteraction of hobby farming rules and commercialityFarming has its own set of ‘hobby farming rules’, which historically have stated that a profit must be made every six years. This is known as ‘the five-year rule’, in that there can be five years of losses but there must be a profit

14 Jul 2020 13:50 | Produced by Tolley Read more

Trusts and Inheritance Tax

Gifts with reservation ― overview

Gifts with reservation ― overviewIntroductionA gift with reservation (GWR) arises when an individual ostensibly makes a gift of his property to another person but retains for himself some or all of the benefit of owning the property. The legislation defines a gift with reservation with reference to

14 Jul 2020 11:48 | Produced by Tolley Read more

��Ƶ