Business Tax Case Studies - Ann L Humphrey

1. Business Tax Case Studies 2006-2012

2. Tax lawyer with over 30 years experience Set up her own practice after 16 years in the City Profiled as a leading authority on Tax Published author on Tax Also specialises in Stamp Duty Land Tax and VAT About Ann

3. A summary has been provided and please click the link to read the full case study. The following case studies on Business Tax cover a range of industries and issues Disclaimer: At the time of original publication these case studies were technically accurate however, as tax law and practice change rapidly, you should take specific advice before taking any action

4. The client was a personal trainer who wanted to raise money to set up a gym in Central London by issuing shares qualifying for relief under the Enterprise Investment Scheme (EIS). The shares were to be issued by New Co. which would own and run the gym. The business model was slightly unusual in that the members of the new gym were to be personal trainers, who would pay a monthly fee to New Co. in order to use the gym facilities with their clients who did not become members. CLICK HERE TO READ EIS Personal training gym startup

5. A US parent company (US Co.) owned the entire issued share capital in a UK company (UK Co.). UK Co. owned the entire issued share capital in three UK companies, MG, GBS and CPP. US Co. intended to make a capital contribution to its UK subsidiary, UK Co. UK Co. would then use that contribution to make capital contributions to GBS and CPP. The purpose of the capital contribution to UK Co. was to enable it to provide its subsidiaries GBS and CPP with funds to acquire capital assets. The question was how would the capital contributions be treated for UK tax purposes? CLICK HERE TO READ Tax treatment of capital contributions between parent and subsidiary

6. UK Co. operated a share registration business in the UK. US Bank had a similar business in the US. UK Co. and US Bank intended to form a JV to which each would contribute its share registration business. The JV vehicle was to be either a UK company registered in England and Wales or a Delaware Limited Liability Company (LLC). UK Co. and US Bank were each to own 50 per cent of the JV vehicle. CLICK HERE TO READ UK US corporate joint venture Choice of vehicle

7. A loss-making company (L Ltd) was sold for 1. At the time of sale, L Ltd had significant accumulated trading losses. At the end of its most recent complete accounting period before sale (the Balance Sheet Date) those losses amounted to around 30 million. The seller wanted to be paid additional consideration if the buyer was able to use any of those losses. CLICK HERE TO READ Sale of loss-making company Construction of wording in share sale agreement

8. US Co. acquired UK Group in 2004, and a structure was put in place which allowed tax relief to be claimed in both the US and the UK in respect of interest on the financing costs. Advice was sought on whether the structure was later caught by provisions introduced in the Finance (No. 2) Act 2005 to prevent avoidance involving tax arbitrage. CLICK HERE TO READ Interest double dip Effect of anti- avoidance provisions

9. Refer to Anns website for access to all the Business Tax case studies Business Tax Case Studies Any questions? Leave a comment or. Contact Ann by email: [email protected]

10. For access to case studies on the other tax areas, please see below More Case Studies Stamp Duty Land Tax (SDLT) Property Tax VAT

Business Tax Case Studies - Ann L Humphrey

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