Depreciation and capital allowances

Most expenses incurred by business is written off during the year, but some costs continue for several years, for example, vehicles and computers. Because they depreciate over several years, you can allocate a portion of the cost to each annual set of accounts. For...

How Limited Company Dividends work

When a Limited Company makes profit it can pay the profit out to its owners by Dividends – which are paid out in proportion to the shares held by the shareholders.  Someone with 100 shares will be paid 100 times more dividends than someone with 1 share....

Should we set up our family business as a Partnership?

There are many reasons for not choosing a Partnership in your position, for instance: They are less tax efficient than Limited Companies Partners must pay Class 4 National Insurance All Partners are responsible for all debts Partnerships can result in disagreements if...

Best Share Split for Spouses

There are a few things to consider when deciding how to split shares between a couple. Genuine ownership Who genuinely owns the business, founded it and acquired it? Who works in it and earns the money?  If the person who formed, and runs, the company isn’t the...

Capital Gains Tax (CGT) Explained – Marriage and Divorce

CGT & Married Couples/Civil Partners When a person gives/sells shares, investment properties etc. to a spouse, the transfer is deemed to be at a no gain/no loss value – so no CGT to pay. By transferring a half share of an investment property to your spouse prior...