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Business tax

You will find listed here all articles related to Budget 2009 - Business tax.

Key issues for owner managed businesses

The proposed increases in personal tax rates for income above £150,000 and the restriction of personal allowances for income above £100,000 have been noted in articles elsewhere, but clearly this could be a significant issue for a number of business leaders and their senior staff.

Further help for loss making businesses.

The Government has had to admit that this recession is both longer and deeper than previously envisaged and therefore in his Budget, Alistair Darling has provided some further help for those businesses that continue to make losses.

Taxation of Foreign profits – some welcome surprises

The foreign profits measures focus on the following issues: - Exemption of foreign dividends and distributions from corporation tax - Introduction of the worldwide debt cap - Changes to the CFC legislation - Repeal of Treasury Consent rules.

Budget 2009: Debt cap pain for both UK companies and inward investors

Commenting on the implications of today's Budget for UK companies Ken Almand, a director of international accountancy firm Mazars says:

Matching chargeable gains and losses in a corporate group

Groups have had for some time the ability to make a claim to deem to transfer an asset from one group company to another to match the gain to be made on the disposal of the asset to be sold with a loss already made by the other group company. This was a sensible administrative measure brought in to assist groups to avoid the physical transfer of assets in order to match group gains and losses. However, until now, the election could only be made when the asset disposed of was sold to an unconnected third party.

Senior executives personally responsible for company accounting systems

In the Budget the Chancellor announced a radical proposal that requires senior accounting officers of large companies to set up and monitor accounting systems that enable the company to file accurate tax returns.

Senior executives face penalties for deficient transfer pricing systems

Following radical proposals announced in the Budget senior executives of companies face being individually culpable if company transfer pricing systems are found to be inadequate. The proposals require senior accounting officers of large companies to set up and monitor systems that enable the company to file accurate tax returns. This has significant implications for transfer pricing given that companies need to have records and evidence that demonstrate that their tax returns comply with the arm’s length principle.

Double Taxation Relief For Corporate - Retrospective Rate Relief & Loophole Closed

Budget 2009 announces retrospective legislation to ensure the reduction in the corporation tax to 28% does not unjustly affect the amount of double tax relief available to companies in receipt of foreign dividends from 1 April 2008.

BN17 - Defintions of Preference Shares

Budget 2009: The treatment of preference shares for raising working capital.

Business’s genuine protection against exchange risks of their investments survives budget change

The sterling value of UK companies’ non-UK investments changes when the exchange rate moves against the overseas currency. To remove this uncertainty which is outside of the control of the business, companies protect themselves by a variety of strategies such as borrowing in the foreign currency or entering into currency contracts such as options or futures to fix their capital value in that currency. Provided this “matching” meets all the tax rules, the exchange gains or losses on the loan or currency contract are not taxed year by year, and are only considered for tax when the investment is sold.

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