“…in this world nothing can be said to be certain, except death and taxes.”, so wrote Benjamin Franklin. The late great comedian Ken Dodd did his best to avoid both, unfortunately succumbing to death last year aged 90. Fortunately, while both are inevitable, there are many ways that UK investors can legally reduce their tax […]
Want to save on your tax bill and invest in growing companies at the same time? With a range of government backed incentive schemes you can do exactly that. Small businesses are the lifeblood of the UK economy. They employ an estimated 16 million people (more than half of the workforce), account for 99.3% of […]
You might think that with the budget of last week, it is all gloom for non-doms. However, it would pay to revisit a previous government initiative.
On 6 April 2012, the government introduced the very attractive Business Investment Relief (“BIR”) for non-UK domiciliaries. This is relevant if you are currently a resident in the UK, are treated for tax purposes as non- domiciled (non-dom), and have overseas income and gains.
On the first glance, It does not seem likely that the UK government would be that generous with its revenue. Nevertheless, these tax reliefs are available to investors in certain instances.
To be eligible for the relief, the company seeking the investment must have:
1. A permanent establishment in the UK for a period of 3 years from the issue of the shares.
2. All the money raised by the share issue must be used within two years in a ‘qualifying trade.’
3. The trade must be carried on by the parent company or subsidiary which is a 90% subsidiary for a period of 3 years from the issue of the shares.