All posts by Natasha Kaye, Tax Partner, CMS

As announced in the Autumn Statement, ER no longer applies in respect of disposals of goodwill to a ‘related’ company on or after 3 December 2014.  However, the draft legislation revealed that the changes will have a wider impact than originally anticipated. Today’s Budget announces a change to the draft legislation to deal with one … Continue reading Entrepreneurs’ relief in relation to transfers of goodwill

George Osborne announced in today’s Budget: “We will close loopholes to make sure entrepreneurs’ relief (ER) is only available to those selling genuine stakes in businesses”. Having now seen the detail of these proposed changes, we find that he has made some targeted changes to the circumstances in which ER can apply but otherwise left … Continue reading Targeted changes to entrepreneurs’ relief – management companies

Following the Autumn Statement, I reported on measures to prevent investment fund managers receiving “disguised fee income” without paying income tax on it as trading or employment income.  While this was prompted by arrangements such as GPLP structures, the draft legislation went much further and would potentially have brought carried interest and co-investment interests into … Continue reading Investment fund managers: taxation of disguised fees – fixed or not?

In his Autumn Statement, the Chancellor announced measures to prevent investment fund managers receiving guaranteed income from investment funds without paying income tax on it as trading or employment income. While this is no doubt targeted at arrangements such as GPLP structures, the draft legislation goes much further and potentially brings carried interest and co-investment … Continue reading Investment Fund Managers: taxation of “disguised fees”

The Government confirmed today that the so-called “late interest” rules are to be abolished in respect of loans made and deeply discounted securities issued between connected companies.  This will affect companies subject to UK corporation tax which have borrowed on deferred interest payment terms from connected company creditors in certain, mainly low tax, overseas territories … Continue reading Abolition of late interest rules for connected companies

The UK and German governments have agreed a joint proposal which may result in the abolition of the UK’s Patent Box regime in its current form. The main theme of the proposal is that preferential tax regimes for intellectual property (IP) should require substantial economic activities to be undertaken in the jurisdiction offering the tax … Continue reading Reform of Patent Box regime on its way

The European Council’s Expert Group on the Taxation of the Digital Economy, which was set up with the task of examining key tax issues relevant to the digital economy (“DE”), issued its final report to the EC on 28 May 2014. The main conclusions are as follows: A separate tax regime for the DE is … Continue reading Tech Sector Update: European Council issues report on the Taxation of the Digital Economy

The Chancellor has added to the range of tax reliefs available for investors by announcing that Social Investment Tax Relief will be introduced in the Finance Bill 2014.   Social Investment Tax Relief is expected to closely mirror EIS by providing income tax relief of 30% on qualifying investments in social enterprises, deferral of CGT on … Continue reading Introducing Social Investment Tax Relief

Extension of taxation on UK residential property held by non-natural persons As one of a number of measures aimed at tackling tax avoidance, the Government is extending the package of taxes on “enveloped dwellings”, lowering the threshold so that the relevant taxes apply to residential properties worth over £500,000 (rather than only to those worth … Continue reading More changes afoot for taxation of residential properties…

After one of the more heated consultations in recent years, HM Revenue & Customs has now published revised guidance on the intended operation of the new “salaried members” rules, which counteract what the Government regards as “disguised employment” through the use of LLPs.  The revised guidance addresses some of the concerns raised, highlights HMRC’s highly … Continue reading “Salaried Members” of LLPs: re-categorisation of junior partners