Assets gifted to employees or shareholder family

Produced by Tolley in association with

Corporation Tax

Guidance

This note provides guidance on the corporate capital gains rules that apply where a company gifts assets either to employees or to shareholders (or members of their family). It also briefly considers other tax aspects of such gifts, including corporation tax deductibility and income tax. For an overview of corporate capital gains, see the Corporate capital gains ― overview guidance note and for transactions with connected parties generally, see the Connected party disposals guidance note.

Why do companies give away assets?

Whilst large companies do not generally give away their assets (other than perhaps to registered charities), it is quite common for smaller companies (especially close companies) to transfer assets to employees or shareholders for no consideration or for consideration less than market value. This can be for a variety of reasons, but often is in recognition of employees providing extra services not covered by their usual remuneration or in order to gift a lump sum to younger generations out of the assets of a family company.

The

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+™

TAKE A FREE TRIAL NOW

Jackie Barker

Tax Partner at Wells Associates , Corporate Tax, OMB, Employment Tax, Personal Tax, VAT, IHT Trusts and Estates, Accounting

I have worked in tax since becoming an associate of the CIOT in 2004, having previously qualified as a member of ACCA.As tax partner with Wells Associates I advise on all aspects of direct taxation including personal and corporate planning. We work with a wide range of individuals and owner-managed businesses offering guidance and support at all stages, from assisting with compliance matters through to advising on more complex strategic matters and providing tax efficient solutions.

Popular Articles

Value Added Tax

Exporting goods ― proof of export

Exporting goods ― proof of exportIn addition to the requirements laid down in the Exporting goods ― overview guidance note, businesses intending to zero-rate exported goods must hold satisfactory evidence that the goods have been delivered to a destination outside of the UK. If satisfactory evidence

15 Dec 2020 14:02 | Produced by Tolley Read more

Owner-Managed Businesses

Class 4 national insurance contributions

Class 4 national insurance contributionsWhat is Class 4 NIC?Class 2 and Class 4 national insurance contributions (NIC) are paid by self-employed individuals and partners in a partnership on their profits arising within the UK. This guidance note considers Class 4 contributions. For Class 2

14 Jul 2020 11:13 | Produced by Tolley Read more

Trusts and Inheritance Tax

BPR ― trading and investment businesses

BPR ― trading and investment businessesIntroductionThe basic qualification rules for business property relief (BPR) are illustrated in the Flowchart ― trading or investment business for BPR purposes.For an overview of BPR, see the BPR overview guidance note.Relevant business propertyThe main

14 Jul 2020 15:36 | Produced by Tolley Read more

��Ƶ