Clive Owen LLP Tax News
December 2019

Welcome to our tax news delivering tax updates for businesses, entrepreneurs and private clients.

Our tax team are constantly advising individuals and companies on a variety of tax matters including inheritance tax planning, company re-organisations and disposals as well as minimising tax across the family.

It is usually the case that, when a company enters a member's voluntary liquidation (“MVL”), any proceeds subsequently distributed to the shareholders are treated for tax purposes as a capital payment and therefore subject to capital gains tax. Thus the funds received are potentially subject to a tax charge as low as 10%.

Remember that certain Christmas gifts to staff are tax-free if structured correctly. Ever since April 2016 employers are allowed to provide their directors and employees with certain “trivial” benefits in kind tax free.

Where possible higher rate taxpayers should “Gift Aid” any payments to charity to provide additional benefit to the charity and for the individual to obtain additional tax relief on the payment.

The government has recently announced that the previous £1,000 limit on the cost of a bicycle provided under the cycle to work scheme has been removed.