Tax Dispatch: our tax roundup
Welcome to Tax Dispatch from BKL’s tax experts.
This is our second edition; if you missed our first, you can catch up here.
In each issue we cover a different specialist area of tax, while highlighting some things you may have missed.
Tax Dispatch is also available via email. If you’d like it sent to you, you can subscribe here.
Tax team news
We enjoyed being at the Taxation Awards on 12 May as the tax community reconnected in person. We were there to cheer on BKL’s Sam Inkersole in the Taxation’s Rising Star category. To our delight, he won!
We’re so proud of Sam for being recognised for his tax specialisms, his support of clients and colleagues alike, and his contributions via magazine articles, webinars and other videos. Having the judges praise the ‘imagination and entertaining style’ of our submission was the icing on the cake.
Our wider team is going from strength to strength. As well as welcoming Hazel Johnson as a new Trust Director in February, and Helena Kanczula as a new Tax Director in March, our tax team grew on 1 April when FSPG Chartered Accountants merged with BKL. We’re pleased to have come together under one roof and are looking forward to offering our tax expertise to even more people, businesses and fellow professionals.
The full breadth of our tax specialisms includes R&D tax relief, probate services, property tax, EIS and SEIS, trusts, VAT and much more.
Tax Dispatch focus: company exits and capital treatment
In our previous edition of Tax Dispatch we explored share buybacks: how a shareholder could exit from a UK company via a company repurchase of shares.
If the company law aspects can be fulfilled, then the distribution of cash by a company on the purchase of shares may be treated as a capital disposal if all the relevant tax conditions are also satisfied. Otherwise, the seller is instead treated as receiving a dividend on the excess of amounts above the repayment of their capital and therefore higher dividend tax rates of up to 39.35% for 2022/23 would apply rather than capital gains tax (CGT) rates of 20% or 10%.
In our new article we look at another way of structuring an exit under which the conditions for capital treatment are likely to be less onerous.
Thank you to everyone who follows our BrassTax articles. Whether you read them via your inbox, here on our website or as republished in Tax Journal and ICAEW TAXline, we’re glad to have you along as we explore the complexities and surprises of the tax landscape.
Recent BrassTax topics have included:
- HMRC and Managed Service Companies
- SDLT: ‘garden or grounds’
- Trust deed terminology
- Rishi Sunak’s tax status
Key dates coming up
1 June: Corporation tax liabilities for accounting periods ended 31 August 2021 become due for payment
14 June: Quarterly instalment payments (large company)
1st payment for 30 November 2022 accounting period due
(also, 2nd payment for 31 August 2022 period, 3rd payment for 31 May 2022 period and 4th payment for 28 February 2022 period)
14 June: Quarterly instalment payments (very large company)
1st payment for 31 March 2023 accounting period due
(also, 2nd payment for 31 December 2022 period, 3rd payment for 30 September 2022 period and 4th payment for 30 June 2022 period)
30 June: Filing deadline for June 2021 corporation tax returns (and for amendments to 30 June 2020 returns)
1 July: Corporation tax liabilities for accounting periods ended 30 September 2021 become due for payment
6 July: Filing deadline for Employment Related Securities returns, Enterprise Management Incentive returns and forms P11D
19 July: Payment deadline for Class 1A NIC (if not paying electronically)
22 July: Payment deadline for Class 1A NIC (if paying electronically)
Are there any particular topics you’d like us to cover in a future edition of Tax Dispatch? Let us know by getting in touch with your usual BKL contact or by using our enquiry form.