These types of scheme are particularly suitable for those who have available liquid assets which can be realised without incurring any substantial tax liability (such as capital gains tax). In essence, the money is transferred into the scheme with the tax payer retaining a right to a pre-determined series of cash payments during his or her lifetime. Whatever else remains in the scheme at the time of his death is given away at the outset to his or her children or grandchildren or other beneficiaries. Therefore, there is a lifetime gift to those beneficiaries but the value of it is discounted to take account of the value of the right retained by the tax payer.
The schemes are usually operated by life insurance companies with the funds invested in a single premium investment bond. This structure is ideal for an arrangement where the pre-established return is to be paid back to the person setting up the scheme, because the legislation relating to single premium bonds permits up to 5% of the initial
**Free trials are only available to individuals based in the UK, Ireland and selected UK overseas territories and Caribbean countries. We may terminate this trial at any time or decide not to give a trial, for any reason.
Taxation of loan relationshipsThe vast majority of companies will have loan relationships and so will need to consider how they are taxed under the loan relationship rules. There are also specific provisions dealing with relevant non-lending relationships and other deemed loan relationships.
Subsistence expensesIntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel which is not to a permanent workplace. See the Travel
Enterprise management incentive schemesWhat is an enterprise management incentive (EMI) scheme?The enterprise management incentive (EMI) scheme is a tax-advantaged share option employee incentive scheme aimed at small entrepreneurial companies that meet certain conditions. It is designed to assist