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A company purchase of own shares (CPOS) can be a useful ‘exit’ strategy for shareholders of owner-managed or family companies in the right circumstances. However, a valid CPOS must comply with company law requirements (which are not considered here).

Mark McLaughlin looks at a key requirement for capital gains treatment on a company purchase of own shares from a shareholder. 

Generally, the UK tax system looks kindly on charitable giving, and encourages this through various tax reliefs.  
 
The most used is the gift aid scheme, whereby a donation to charity is made from taxed income, so that HMRC will then repay to the charity the tax ‘deducted’. So, a gift of £8 is treated as being a £10 gift from which £2 (i.e., tax at 20%) has been deducted. The charity can then reclaim the £2, receiving £10 in total for an £8 outlay. If the giver is liable to higher rates, further tax relief can be claimed.

Richard Curtis explores the ‘pros’ and ‘cons’ of workplace charitable donations. 

Suppose that a business purchased an asset (e.g., a building) for a project expecting to use it in its taxable business, and recovers all the VAT on the purchase.
 
However, circumstances change and it no longer needs to use the building and decides to sell it to a housing association for redevelopment. It cannot opt to tax and so the sale is an exempt supply. The change of intention takes place two years after buying the property.

Andrew Needham looks at how VAT recovery on an asset alters with a change in its use.

Relief for a capital loss on a loan to a trader may be claimed by the lender (under TCGA 1992 s 253), where the money has been used wholly for the purposes of the trade, but the debt has ‘become irrecoverable’.

Ken Moody finds no specific HMRC guidance on the procedure for claiming a capital loss when money lent to a trader becomes irrecoverable and suggests practical solutions.

Graduates leaving university in 2026 typically start their working life with around £50,000 in student loan debt.  

Repaying a student loan seems, on the face of it, like a good idea; you pay interest on the loan, so repaying it reduces the interest. On the current Plan 5 (students starting since August 2023), the interest rate is currently 3.2%, but for those on Plan 2 (students starting Sept 2012 to July 2023), the rate is higher, ranging from 3.2% to 6.2% depending on income.

Tristan Noyes considers whether repaying a student loan (or repaying your children’s loan) is a good idea.

Ceasing to trade does not automatically end a company's legal or tax obligations, and where funds remain in the company, extracting them in a tax-efficient manner is often a key consideration for directors and shareholders.

Jennifer Adams looks at tax implications when a company ceases trading or becomes dormant but still holds cash in its bank account.

It may seem that a will is not something that needs worrying about whilst one is alive and well. However, upon death it's too late to say what will happen to your assets.  

A will is a document which states the wishes with respect to the assets within the estate; an executor is appointed who takes legal ownership of the estate and distributes assets according to the provisions of the will.

Chris Thorpe outlines why having an up-to-date will is highly advisable.

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.