Financing the company ― overview

Produced by a Tolley Corporation Tax expert

Corporation Tax

Guidance

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

To read the full Guidance note, register for a free trial of Tolley+™

TAKE A FREE TRIAL

Popular Articles

Personal Tax

Timing of disposal for capital gains tax

Timing of disposal for capital gains taxDate of disposalThe date of the disposal determines the period in which the gain is subject to capital gains tax (CGT). When the rates of CGT change, the determination of the date of disposal can also affect the rate of CGT that applies to the gain.See the

14 Jul 2020 13:50 | Produced by Tolley Read more

Year-end tax planning

Personal Tax

Losses on shares set against income

Losses on shares set against incomeUsually, allowable capital losses can only be set against chargeable gains. If the losses are not fully utilised against gains in the year in which they arise, the excess is carried forward to use against future gains. See the Use of capital losses guidance note

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

Employment Tax

Short-term business visitors (STBVs)

Short-term business visitors (STBVs)What is a short-term business visitor?An STBV for UK tax purposes is an individual who performs duties for a non-UK employer and as a part of those duties has been asked to spend a short period working in the UK. There is a common misconception that there is

14 Jul 2020 13:40 | Produced by Tolley in association with Gill Salmons Read more

��˾��ҹ��