Since 1927 the leading authority on tax law, practice and administration

New queries: Another capital idea; Share swap...

© Copyright LexisNexis 2024. All rights reserved.

17 September 2013

Issue: 4420 / Categories: Forum & Feedback

...Problem with parts; Interest payments

Another capital idea

I act on behalf of a limited company and the latest accounts show the following entries: share capital £100; share premium £249 900 profit and loss reserves £10 000; total £260 000. These entries are represented by: cash £250 000; stock and working capital £10 000; total £260 000.

The share premium account was created on the transfer of a partnership business to the company about 15 years ago before I was acting. This was at book value which was mainly represented by stock/cash.

Due to trading conditions the company has generated very low profits over the past few years and no dividends have been paid since incorporation.

It is anticipated that the company will cease trading when the lease of its premises expires in three years’ time.

The husband and wife shareholders/directors are both about 70 years old and are...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

New queries: Another capital idea; Share swap...

© Copyright LexisNexis 2024. All rights reserved.

17 September 2013

...Problem with parts; Interest payments

Another capital idea

I act on behalf of a limited company and the latest accounts show the following entries: share capital £100; share premium £249 900 profit and loss reserves £10 000; total £260 000. These entries are represented by: cash £250 000; stock and working capital £10 000; total £260 000.

The share premium account was created on the transfer of a partnership business to the company about 15 years ago before I was acting. This was at book value which was mainly represented by stock/cash.

Due to trading conditions the company has generated very low profits over the past few years and no dividends have been paid since incorporation.

It is anticipated that the company will cease trading when the lease of its premises expires in three years’ time.

The husband and wife shareholders/directors are both about 70 years old and are...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

Issue:

4420

Categories: Forum & Feedback [1]

SourceURL:

Links:

READERS' FORUM premium icon

Readers forum: Claiming pre-registration input tax Practice tip: 19 December 2024 New Queries: 19 December 2024 Readers’ forum: Should I advise my client to declare income? Readers’ forum: Pension scheme set up as discretionary trust?

FIVE WAYS TO MAKE ACCOUNTS PRODUCTION AND TAX EASIER.
Download the exclusive Xero
free report here.

New queries

Please email any questions you might have
to: taxation@lexisnexis.co.uk.

NEWS

Automated tracking system for taxpayers could save £36m a year, study shows Welsh income tax rates are unchanged Business expenditure on R&D rises in 2023 HMRC targets landlords who may have undeclared rents Lump sums cannot be returned to pension scheme

Third slide

Deadline dates for January 2025

CASES

No extenuating circumstances to extend deadline Delay in issuing penalties was no excuse for late return Sales of occupation income avoidance rules apply Whole of settlement was not subject to tax Payments were taxable as earnings

MOST POPULAR

Readers forum: Claiming pre-registration input tax No extenuating circumstances to extend deadline This week's opinion: 19 December 2024 Automated tracking system for taxpayers could save £36m a year, study shows Welsh income tax rates are unchanged

back to top icon