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Our Autumn 2017 Newsletter

We’ll work hard to reduce your tax bill

At O&K we love offering sound personal and business tax advice. We always strive to provide timely, accurate and personally tailored assistance at all times. We will also strive to reduce your tax bill.

It is because we have this approach that we are able to legitimately reduce your personal and corporate tax bills.

This September e-newsletter focuses on six areas that may save you money by reducing your tax liabilities, whilst at the same time helping you stay in control.

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Enterprise Investment Scheme

The Enterprise Investment Scheme – EIS – An Overview

This scheme is available for smaller ‘higher-risk’ trading companies to raise finance.

The Great Benefis of EIS

Income Tax Relief
An investor can receive up to 30% of their investment, up to £1,000,000 per tax year. This is in the form of income tax relief.

Capital Gains Tax Exemption
If the investor sells their shares after 3 years, any profit is free from Capital Gains Tax.

Loss Relief
If shares are disposed of at a loss, the investor can elect that the amount of the loss, minus any income tax relief given, can be set against income of the year in which they were disposed of, or any income of the previous year, instead of being set off against any capital gains.

Carry Back
There is a ‘carry-back’ facility. As a result this allows all or part of the cost of shares acquired in one tax year to be treated as though the shares had been acquired in the preceding tax year. This is subject to the annual limit for that earlier year not being exceeded.

Capital Gains Tax Exemption
If the investor sells their shares after 3 years, any profit is free from Capital Gains Tax.

Capital Gains Tax Deferral Relief
The payment of tax on a capital gain can be deferred where the gain is invested in shares of an EIS qualifying company. The gain can be made from the disposal of any kind of asset, however the investment must be made within the period of one year before or three years after the gain arose.

EIS – Restrictions for Investors

Connection by Financial Interest
You cannot hold more than 30% of the share capital or voting rights

Connection by Employment
You cannot be a partner, employee or paid director of the company. This applies for up to 2 years before and 3 years after the share issue. However, there is an exception for Business Angels which allows the investor to become a paid director after the issue of the shares.

This is a brief overview of the Enterprise Investment Scheme. For our expertise and advice, Get in Touch Here, and we’ll be happy to help you.

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The Seed Enterprise Investment Scheme – SEIS

Here’s a Very Generous Scheme – The Seed Enterprise Investment Scheme (SEIS)

An Overview

SEIS has been designed to help early stage companies raise equity finance. There is tax relief for individual investors of up to 50% of their investment in one tax year. Most of all there are many other benefits and basic qualifying criteria. Owadally and King have expertise in this area as well as EIS.

SEIS

We are giving you a brief overview here. However if you need more info Get In Touch Here and we’ll give you the best possible advice about these schemes.

SEIS – Excellent Benefits

Income Tax Relief
An investor can receive up to 50% of their investment, up to £100,000 per tax year, in the form of an income tax break.

Carry Back
There is a ‘carry-back’ facility, which allows all or part of the cost of shares acquired in one tax year to be treated as though the shares had been acquired in the preceding tax year.

Capital Gains Tax Exemption
If you sell the shares after 3 years, any profit is free from Capital Gains Tax. If you sold an asset and reinvested all or part of the amount of the gain in shares, which also qualify for SEIS income tax relief, the amount reinvested may be partly exempted from Capital Gains Tax.

SEIS – Qualifying Criteria

Income Tax Relief
The company/group must have fewer than 25 employees The company/group must have no more than £200,000 in gross assets The company/group must not have received more than £150,000 under the scheme The business must not have been trading for more than 2 years The investment must be in ordinary shares that are not redeemable or carry any preferential rights SEIS –

Restrictions for the Investor

Investors can invest up to £100,000 per annum under SEIS.

A single investor cannot control more than 30% of the company’s shares. They must not be employed by the company. Howvere they can be a Director. Any shares invested must be held for a minimum of 3 years

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Business Plans – Plan for Business Success on Just One Page

According to numerous reports and research, over 1.5 million Small and Medium Size Enterprises (SMEs) in the UK do not have Business Plans.

This raises a number of questions.

How do those businesses measure their progress?

Are they really focused?

Do those enterprises know the direction they are heading in?

Furthermore the most important question is ‘Are those business owners truly focused on making sure their business gives them the life that they want’?

We believe that having an effective business plan is fundamental when it comes to helping grow a business and measuring progress. We also believe that a business without a plan is like driving a car without a real clue as to the journeys final destination.

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Our August 2017 e-Newsletter

In the August editon of O&K News

Introduction to our Partner Organisations – We’re adding value all the time

FREE Business Guides – For you to download

Details about an exclusive Free Seminar – InviteOnly 5 Places Available

Making Tax DigitalSome Good News For You

Plus

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