We’re very proud of our Tax Team who have been commissioned to write an article for Taxation Magazine this week. It’s a very good summary of the main implications of close companies – from explaining what close companies are to consequences of being close, transfers of value and the interest on loans for close companies.
‘Close companies make up a considerable proportion of businesses within the UK and, in its Company Taxation Manual at CTM60055, HMRC notes: ‘A company controlled by a small group of persons may arrange its affairs to enable those persons to avoid income tax.’ Consequently, it has sought to introduce legislation to counter such advantages. As a result, there are special tax provisions applicable to close companies, so it is important to ensure the basics of these companies are understood, starting with the relevant criteria and definitions.’
Read the full Taxation Magazine article here