The question of whether companies are connected continues to cause confusion. Two companies have some shareholders in common, but they have differing shareholdings and there is also a debt existing between them
The taxman’s powers to withhold repayments
Arguments in support of the control premium
HMRC have produced two documents to assist companies set to see changes to their preparation of financial statements over the coming years.
The papers provide an overview of the tax considerations that arise in a shift from the UK’s current generally accepted accounting principles (GAAP) to new, EU-endorsed standards.
Private company share sales may include a provision relating to a possible future sale of those shares to a third-party within a predetermined period. In that event, the original shareholder may receive a proportion of any enhanced price
Metso Paper Bender Forrest Ltd; Metso Paper Bender Machine Services Ltd (TC3056)
Draft statutory instrument The Real Estate Investment Trust (Amendments to the CTA 2010 and Consequential Amendment) Regulations 2014 has been published.
It follows work begun in FA 2012, making the condition regarding the level of borrowing for a real estate investment trust (REIT) simpler to comply with.
The client is a mutual trading company that holds an annual conference on which a small profit is made. An events company wishes to buy the conference, and will pay a fixed capital sum followed by five annual payments
Armajaro Holdings Ltd (TC2960)
Two partnerships have merged on a day that corresponds with neither of their accounting dates. Advice is required on the effect of this on the basis periods and the impact of the introduction of corporate partners into the merged business
Prudential Assurance Co Ltd & another v CRC, Chancery Division
Some banks and other financial institutions use inappropriate criteria to decide in which format they report payments of interest, HMRC have warned.
The department’s announcement follows an initial check of data supplied to fellow European Union states under the EU savings directive.
Financial institutions’ declarations regarding payments of interest can be made either under FA 2011 schedule 23 – by type 17 and type 18 returns – or the UK regulations that implement the savings directive.