TODAY’S HEADLINE

NOT FOR PROFIT

New ICAEW guidance on donations by a company to its parent charity

It is common practice for companies that are 100% owned trading subsidiaries of charities to donate all of their taxable profits to the charitable parent company. By doing so, as long as the donation is paid within 9 months of the year end, the … [Read More...]

NOT FOR PROFIT

New ICAEW guidance on donations by a company to its parent charity

It is common practice for companies that are 100% owned trading subsidiaries of charities to donate all of their taxable profits to the charitable parent company. By doing so, as long as the donation is paid within 9 months of the year end, the subsidiary company can claim Gift Aid tax relief and reduce their Corporation Tax liability to nil. Gift Aid payments out of company reserves In some cases, taxable profit can exceed the accounting profit of a company (e.g. due to depreciation exceeding capital allowances, or disallowable items such as client entertaining being added back). Where a subsidiary of a charity makes a Gift Aid donation in this situation, part of the Gift Aid payment is effectively coming out of the company reserves. The problem Under Companies Act 2006, a company is not permitted to make a distribution of an amount greater than its profits. Previously the Charities Commission endorsed the opinion that Gift Aid payments were not akin to a distribution, … [Read More...]

Top 10 tips for success at Export Week

Companies often consider exporting as a way of growing their business. While exporting can be daunting for those trying it for the first time, the good news is that there is lots of help and support available to SMEs, including the North East Chamber of Commerce and UKTI. Exporting has many benefits for a business – there are the attractions of new and growing markets; it can help spread the risk; extend the life span of a product or service; address seasonal fluctuations; increase the returns on investment and R&D, build your prestige and brand; increase revenue and profits and there is Government support available to help you do this. To celebrate Export Week, here are my top 10 tips for exporting success: Tip 1 – Research Find out which overseas markets are best to target. If you are a first time exporter consider nearby countries, particularly ones where English is widely spoken and they are easily accessible. Assess your target customer and examine the … [Read More...]

Taxation & Payroll

Major changes to the taxation of buying property in Scotland

Increasing numbers of North East businesses are acquiring property in Scotland as part of their expansion into areas such as Aberdeen, Edinburgh and Glasgow. However, recent announced changes will impact upon property acquisitions completed after 1 April 2015. For some, the new Land and Buildings Transaction Tax may increase the tax payable on acquisition and for others the new regime may reduce taxes. North East based purchasers of property in Scotland should consider whether they will be affected and may wish to seek to accelerate or delay purchases accordingly. Angel Haig of our MHA affiliate firm Henderson Loggie has summarised below the major changes. The first of the devolved taxes, land and buildings transaction tax (LBTT) comes into force on April 1 2015, replacing stamp duty land tax (SDLT) in relation to transactions involving land in Scotland. LBTT is similar to SDLT in many ways, however, where SDLT is a slab tax (i.e. the whole price is taxed at a fixed rate) LBTT … [Read More...]

Archives

Follow

Get every new post delivered to your Inbox.

Join 100 other followers