The world of Corporate Tax is a complex and constantly changing arena, which is why it’s important to work closely with your tax adviser to ensure not only a considered tax plan is put in place, but that the plan is reviewed regularly.

In this short blog we give you an overview of just three key areas it’s worth bearing in mind in your business planning.

Buying or selling buildings – remember your capital allowances

As a company if you buy a building which you use for your trade, you can make a joint election with the seller to agree the amount of the money to be allocated to the fixtures. This then allows you, the purchaser, to claim capital allowances on the fixtures.

The election must be made jointly by both the purchaser and seller within two years of completion of the transaction, otherwise capital allowances cannot be claimed by the purchasers on the fixtures. 

New reporting obligation for groups

Companies that are in a 75% group, and where any group company is utilising brought forward losses, a “group allowance allocation” statement must be submitted to HMRC.

Groups are restricted to £5m in brought forward losses per year and the allowance allocation statement is required to show HMRC how this limit has been allocated within the group. This statement is a requirement, regardless of the level of brought forward losses utilised.

Employee share options

It’s important to be aware of the tax implications of employee share schemes. There can be current or deferred tax implications.

Tax relief can be obtained when the options are bought or sold based on the difference between the market value of the shares and the money received on sale. It is important to keep your accountant posted when options are granted or sold as there may be additional tax reporting obligations to consider.

Get in touch

Keeping your tax adviser posted on current and future business plans is crucial in creating a corporate tax plan that suits your specific business needs. Our Corporate Tax team are here to help. Get in touch with me, Suzanne Brownie, or another member of the team for an initial chat.