½Û×ÓÊÓƵ

Financing the company ― overview

Produced by a Tolley Corporation Tax expert
Corporation Tax
Guidance

Financing the company ― overview

Produced by a Tolley Corporation Tax expert
Corporation Tax
Guidance
imgtext

How to raise sufficient finance to commence and continue operating is one of the most important considerations for most types of business.

There are two ways to finance a company; debt finance and equity investment. A fairly obvious sources of financing is bank finance. However there are also several types of tax efficient investment schemes available, such as the enterprise investment scheme (EIS) and venture capital trusts (VCT). In addition, there are a wide variety of tax reliefs and government grants available, which are often a valuable way to increase the cash available to finance the business.

Obtaining tax advice at an early stage to ensure that any potentially relevant reliefs are actually available can help attract and retain suitable investors.

This guidance note explores some of the options available and the relevant tax considerations for each one.

Loans

Most businesses will have to take out a loan of some sort and the tax implications will differ depending on the terms of the loan and the identity of the lender. There are a number of advantages

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by

Popular Articles

Special rate pool and long life assets

Special rate pool and long life assetsSpecial rate poolExpenditure on some types of plant or machinery must, if neither annual investment allowance (AIA) nor first year allowances (FYAs) are available, be allocated to a ‘special rate pool’. Expenditure to be allocated to the special rate pool

14 Jul 2020 13:41 | Produced by Tolley Read more Read more

Long service awards

Long service awardsEmployee recognition by an employer can be an important motivational tool, as well as having a positive effect on retention. Most employer awards made to an employee are treated as taxable earnings under ITEPA 2003, s 62 or as a benefit under ITEPA 2003, s 201 because they are

14 Jul 2020 12:11 | Produced by Tolley Read more Read more

Interest on late paid tax

Interest on late paid taxIntroductionInterest on late paid tax is a compulsory charge set out in legislation to reflect the interest which would have accrued to the Exchequer had the correct amount of tax been paid at the right time.Harmonised legislation was introduced in 2009 to:•set statutory

14 Jul 2020 12:00 | Produced by Tolley in association with Philip Rutherford Read more Read more