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Professional accountants serving the UK and helping small businesses to grow!

Whether you are an expanding company or just starting up, KAMP Accountants is here to help.

With extensive experience working with large and small clients throughout the UK, we support large and small business in a broad range of business sectors with all their accountancy requirements.

Investors' relief

Newsletter issue - June 2018.

At the time of the 2016 Spring Budget, the government announced that the existing capital gains tax (CGT) entrepreneurs' relief would be extended to certain long-term investors in unlisted trading companies who had subscribed for their shares. However, when the Finance Bill 2016 was published a few days later, it became apparent that in fact a new relief - investors' relief - was being created. This new relief is designed to complement entrepreneurs' relief by extending the 10% rate of CGT to gains accruing on disposals of qualifying shares by investors in a company who have no connection with the company, subject to a lifetime limit of £10 million.

The extension of the 10% CGT rate to external investors is intended to provide a financial incentive for individuals to invest in unlisted trading companies over the long term, to enable such companies to be able to access the capital that they need for expansion. The relief also applies to certain trustee disposals.

An individual may be able to claim investors' relief and entrepreneurs' relief on the disposal of different shares held in the same company or group. However, the investors' relief shares must be acquired before the investor becomes an employee or officer of the company.

Investors' relief is a completely separate stand-alone CGT relief - it does not have any associated income tax reliefs. It allows the investor to pay the 10% rate of CGT on gains he makes when he disposes of his qualifying shares, if those shares have been held for at least three years. Since this three-year period can only start from 6 April 2016, the first qualifying disposals will not occur until 6 April 2019.

Conditions

There are strict conditions on how and when the investor can become involved as an employee or director of the company.

The investor is permitted to be a shareholder of the company before he acquires the shares that qualify for investors' relief. So on disposal of those shares, the investor may also hold other non-qualifying shares in the same company. This requires a complex set of rules to determine which shares are qualifying shares for investors' relief, and how much of the gain that arises from a particular disposal qualifies for the relief.

The rules are designed to prevent the investor being repaid all or part of his investment before the three-year investment period has expired. To achieve this investors' relief borrows conditions from the Enterprise Investment Scheme (EIS) concerning receipt of value, which stipulate that amounts received in excess of £1,000 will mean the shares do not qualify.

Certain conditions apply to the company, the investor, and the shares and all these must be reviewed if a claim is to be successful.

Investors' relief must be claimed; it is not automatic. The time limit is the first anniversary of 31 January following the end of the tax year in which the disposal takes place. Trust claims must be made jointly by the trustees and the beneficiary.

Fees for non-recurrent services would be based on time involved and would be agreed before we start work on given task.

  • Accounts and Taxation
  • Accounts prepared on time and presented to you at your premises
  • Income tax calculations and projections
  • Annual superannuation certificates for Partners
  • Practice manager training about bookkeeping
  • 2 - 4 meetings in a year at your premises
  • Personal expenses
  • Payroll
  • SD55 for practice staff
  • Installation and training in respect of practice computerised accounting system
  • Unlimited telephone and email support for adhoc queries

Non - recurrent Services

•VAT advice •Capital gains tax planning •Partnership agreements •Surgeries finances •Pension planning •Budget and cashflow planning •Inheritance Tax planning

Recurrent Annual Services based on fixed fee:

  • Accounts and Taxation
  • Accounts prepared on time and presented to you at your premises
  • Income tax calculations for Principles and Associates
  • Practice manager training about bookkeeping
  • 2-4 meetings in a year at your premises
  • Personal expenses
  • Payroll
  • SD55 for practice staff
  • Installation and training in respect of practice computerised accounting system
  • Unlimited telephone and email support for adhoc queries

Non - recurrent Services

  • VAT advice
  • Capital gains tax planning
  • Partnership agreements
  • Surgeries finances
  • Pension planning
  • Budget and cashflow planning
  • Inheritance Tax planning

Fees for non-recurrent services would be based on time involved and would be agreed before we start work on given task.

Medical Practices

Our specialist team provides a wide range of accounting and business services to General Practice.

Recurrent Annual Services based on fixed fee:

Dental Surgeries

Fees for non-recurrent services would be based on time involved and would be agreed before we start work on given task.

Recurrent Annual Services based on fixed fee: