Ask the expert!

In the ever-evolving world of taxation, there are always new and pressing issues that individuals and businesses need to be aware of.

Let ETC Tax support you when navigating complex tax issues by answering some of the current “hot topics” in taxation.

Surplus Cash – A Nice Problem to Have!!!

Q. My client has accumulated surplus cash via their trading company, how do I managing their excess cash efficiently as they want to utilise this cash for future generations?

A. One potential solution is the establishment of a Family Investment Company (FIC), which can help manage surplus cash effectively. However, decisions such as whether to use a Holding Company (HoldCo) or a New Company (NewCo) and how to move cash/assets tax-efficiently are critical. Additionally, Inheritance Tax (IHT) planning should be a key consideration in this context. Engaging a specialist in tax and financial planning is advisable to make informed decisions.

Staff Retention Challenges

Q. Finding and retaining skilled staff is a growing challenge for businesses, what can be put in to place to attract and retain top talent?

A. Employee Management Incentive (EMI) and growth share arrangements have become increasingly popular. When implementing these arrangements, several factors come into play, including valuations (approval by HMRC for EMI), EMI advance assurance, performance criteria, and Employment Related Securities/S431 elections. Again, seeking specialised advice in structuring these schemes is crucial to ensure compliance and maximise their benefits.

Accidental Landlords and IHT

Q. I am a landlord with significant property portfolio and I found myself facing substantial Inheritance Tax (IHT) liabilities, can you advise someone that didn’t even plan on becoming a property investor?

A. It’s crucial to start early and consider strategies to reset the seven-year clock for gifting and inheritance planning. Growth shares remain a valuable option, but the prospect of IHT abolition is uncertain. Therefore, seeking advice from tax specialists is essential for navigating these complex waters.

ETC Tax has a team of tax experts on hand to offer specialist tax advice on a range of complex tax issues. Whether you are an accountant or lawyer looking for a tax specialist, an individual looking for personal tax advice, or a company looking for help with complex tax matters, we can help. www.etctax.co.uk

If you want to learn more about what is hot in tax, head over to Eventbrite where you can register to download the recording of the recent webinar, or click the link here: