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Family businesses have a unique tax planning opportunity – the ability to bring one’s spouse, civil partner or children into the business and share in the profits.  

Done properly, it can significantly reduce the overall tax bill.  Some find it morbid to think about planning for their own death, so put off writing a will.

Tristan Noyes explores the opportunities and risks for business owners of employing their spouse or other family members in the business to reduce the family’s overall tax bill. 

It is relatively common for assets such as investment properties to be jointly held in the names of a married couple (or civil partners).  

Mark McLaughlin highlights a case in which a taxpayer might have prevented being taxed on income they never actually received. 

Some assets are exempt from capital gains tax (CGT), and it is always worth being aware of these. The exemption for an only or main residence (immovable property) is probably the most well-known, but there are also exemptions for chattels and wasting assets (moveable property). 
 
Richard Curtis outlines the capital gains tax exemptions for chattels and wasting assets. 

When a business sets up a new client or supplier, it is good practice to check the supplier’s VAT number because, if it is invalid, so is the tax invoice they issue, and HMRC may disallow the input tax claim. It is equally important in Northern Ireland when dealing with sales to businesses in other EU Member States, because if a business gets the VAT number wrong it should not zero-rate the sale and HMRC will assess the business if it has.  

Andrew Needham looks at how to check if a VAT number for a supplier or customer is valid. 

The first point to note is that for business incorporations on or after 6 April 2026, FA 2026, s 39 amends the capital gains tax incorporation relief provisions in TCGA 1992, s 162, requiring a claim to be made. Previously, the application of s 162 was automatic if the requirements of s 162 were met, the main one being that what is transferred to the company is a ‘business’ and not merely a collection of assets.  

Ken Moody looks into the practicalities and mechanics of incorporation relief under TCGA 1992, s 162 and finds it is not quite as straightforward as he remembered.

With remote and hybrid working now firmly embedded in British working life, understanding the tax treatment of working from home remains important.  

The rules differ depending on whether the worker is an employee, self-employed or a company director and choosing the right method can make a noticeable difference to the overall tax position. 

Jennifer Adams considers some tax implications of working from home.   

An ‘excepted’ asset for inheritance tax (IHT) business property relief (BPR) purposes is defined within IHTA 1984, s 112 as follows: 

‘(2) An asset is an excepted asset in relation to any relevant business property if it was neither— 

(a) used wholly or mainly for the purposes of the business concerned throughout the whole or the last two years of the relevant period defined in subsection (5) below, nor 

(b) required at the time of the transfer for future use for those purposes.’ 

‘(5) For the purposes of this section the relevant period, in relation to any asset, is the period immediately preceding the transfer of value during which the asset……..was owned by the transferor or, if the business concerned is that of a company, was owned by that company or any other company which immediately before the transfer of value was a member of the same group.’ 
Chris Thorpe outlines how discretionary trusts can be used to gift assets tax-free.

The employment-related securities legislation deals with arrangements involving shares and securities provided by reason of employment where the full value of the employment reward provided to the employee is not included in the salary package and is charged to tax.  

Jennifer Adams considers the tax implications of shares in a family company being awarded or gifted to family members of employees. 

A sole trader looking to expand their business might be weighing up the ‘pros’ and ‘cons’ of a partnership or a limited company. They are very different, with not only very different tax consequences, but functions as well. 

Chris Thorpe looks at partnerships and companies and considers which business model might be best.  

Under the loan relationships rules for companies, debits on loan arrangements are not deductible for corporation tax purposes in some circumstances.

Kevin Read highlights a recent case concerning the loan relationship rules for companies. 

When HM Revenue and Customs (HMRC) opens a tax return enquiry, the natural reaction of most taxpayers is to speculate about the reason why their tax return has been selected. In fact, HMRC does not need an excuse to open a tax return enquiry; a small proportion of tax returns are simply selected at random. . 

Mark McLaughlin looks at whether a taxpayer can find out if an HMRC enquiry has been opened as the result of an accusation made by a third party. 

When considering the tricky matter of remuneration planning, there are two things to consider; the amount of remuneration, and what form it takes. 

Chris Thorpe looks at what to watch out for with regard to paying employees and directors.

Despite the reduction in National Insurance contributions (NICs) in Spring Budget 2024, more employees are paying tax at higher rates on their earnings due to the freezing of tax thresholds. Some may find that any pay rise or bonus attracts additional tax and NICs such that the net pay increase is minimal.  

Jennifer Adams looks at some alternatives to rewarding an employee with a pay rise or a bonus. 

Mark McLaughlin looks at company purchases of own shares and warns not to become too focused on the more difficult rules for capital treatment. 

A company purchase of its own shares from a shareholder is a popular ‘exit’ strategy when an individual shareholder is retiring, or a dissenting shareholder is departing.