Taxation

We adopt a holistic approach to the delivery of our tax
compliance and tax planning services.

We adopt a holistic approach to the delivery of our tax compliance and tax planning services.

Knowledge Base

Where we share our
in-house expertise
directly with you

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Knowledge Base

Where we share our
in-house expertise
directly with you

Arrow Down

Taxation Services

We never consider one tax in isolation, or tax separately from the commercial and practical issues facing our clients. We examine all factors to ensure that our tax solutions are right for each of our clients. We generally have longstanding relationships with clients and we are constantly reviewing our planning solutions with them to ensure that they remain effective with changing personal and business circumstances.

We deal with routine tax compliance work right through to complex tax planning assignments which may cover many taxes and different tax jurisdictions

Our tax team members work closely with other colleagues within Friend Partnership to ensure that our tax support is practical and commercial – the overarching aim is always to ensure that tax liabilities are minimised and deferred wherever possible.

We follow a personal and ‘hands on’ approach to the delivery of our tax services. We work closely with our clients to fully understand their personal and business aspirations. We assist them to identify the key commercial and practical issues and devise tax solutions to address the challenges which may arise. The planning we put in place will enable them to realise their goals and maximise their personal and business wealth and get on with their day-to-day business and lives.

We follow a personal and ‘hands on’ approach to the delivery of our tax services. We work closely with our clients to fully understand their personal and business aspirations. We assist them to identify the key commercial and practical issues and devise tax solutions to address the challenges which may arise. The planning we put in place will enable them to realise their goals and maximise their personal and business wealth and get on with their day-to-day business and lives.

Friend Partnership individual and commercial approach to tax enables us to deliver proactive tax support and planning which is bespoke, practical and above all robust for your business.

Tax for businesses

The Friend Partnership corporate tax team in deals with many large companies in a range of business sectors. Our clients include UK subsidiaries of overseas parent companies, and listed companies, through to entrepreneurial, privately-owned businesses and successful individuals.

With our wide corporate client base there are a vast range of tax issues we address for them on an ongoing basis. Our timely input enables our clients to get on with running their businesses secure in the knowledge that the tax obligations are being handled efficiently.

We provide proactive input to all clients keeping them up to date with new tax initiatives that may give either tax saving opportunities or require new reporting or tax payment obligations.

Our corporate tax planning input addresses the ‘normal’ business activities undertaken by clients as well as dealing with the one-off issues which arise for each business.

The tax team deals with the following:

Compliance

The preparation of your unaudited accounts
Payment planning and quarterly instalments

Routine and in-depth enquiries from HMRC

Tax Payroll

Salary sacrifice arrangements

H M Revenue & Customs PAYE inspections

Pensions

Planning

Research and development (R&D)

Group structuring

Purchase of own shares
and capital reduction

Capital value realisation
Creative industries relief
Capital allowance maximisation

Employee incentives and
employee share schemes

Profit extraction

Intellectual property

Transactions

Business acquisitions and disposals
Demergers

Due diligence reviews

Reconstructions
and reorganisations

Management buy outs
and buy ins

Friend Partnership individual and commercial approach to tax enables us to deliver proactive tax support and planning which is bespoke, practical and above all robust for your business.

Tax for Individuals

Our support for our personal tax clients is co-ordinated and closely locked in to any planning or other initiatives we may be pursuing with those clients. The approach to tax is seamless on all fronts so that clients can be at ease knowing that their tax affairs can be left to us.

The tax team deals with the following:

Compliance

Preparation of tax returns and supporting information with no jargon

Payment planning
Routine and in-depth enquiries from H M Revenue & Customsive partner

Planning – Income Tax

Enterprise Investment Scheme
Venture Capital Trusts
Remuneration strategies
Seed Enterprise Investment Scheme
Giving to charity
Pensions

Planning – Capital Gains Tax

Enterprise Investment Scheme

Furnished holiday letting

Rollover relief

Enterprise Investment Scheme

Planning – Inheritance Tax

Lifetime gifting

Business and company
ownership structures

Trust

Business and agricultural
property relief

Tax effective will planning
and use of basic and main
residence nil rate bands

Valuations – for tax purposes

Private company shares

Inheritance tax planning

Ten-year and exit charges

Shareholder disputes

Friend Partnership personal tax team aim to relieve clients of the tax burden so that they can concentrate on their personal and business interest.

VAT and SDLT Services

At Friend Partnership our tax team is highly experienced in identifying and addressing all VAT and tax related issues.

The team also works closely with our audit and assurance team to address VAT compliance issues that they identify as part of their regular work with our corporate and business clients.

The tax team deals with the following:

VAT

Registering businesses for VAT

Assisting with VAT inspection visits and the assessments arising from them
Carrying out VAT health checks
Completion of VAT returns

Advising on VAT liability and planning for one off transactions

Advising on the VAT implications of overseas transactions

Stamp Duty Land Tax (SDLT)

Advising on SDLT liabilities for particular transactions
Assisting with VAT inspection visits and the assessments arising from them
Indirect taxes can often be overlooked by individuals and companies – but non-compliance can result in costly tax liabilities, penalties and interest. Friend Partnership can help you avoid these costs.

Entrepreneurs’ relief, EIS & SEIS schemes

A healthy economy very much depends on its entrepreneurs and wealth creators.  In recognition of this, UK tax legislation contains a number of tax incentives and tax reliefs designed to encourage them to create and grow new businesses. The rules can be complex, but with the right professional advice and implementation, access to such valuable reliefs can be achieved and substantial tax savings can be made

A healthy economy very much depends on its entrepreneurs and wealth creators.  In recognition of this, UK tax legislation contains a number of tax incentives and tax reliefs designed to encourage them to create and grow new businesses.

The rules can be complex, but with the right professional advice and implementation, access to such valuable reliefs can be achieved and substantial tax savings can be made

Friend Partnership’s services for entrepreneurs and investors will ensure that planning involving these tax incentives and tax reliefs is implemented on time and in accordance with the detailed legislation so potential can be absolutely maximised.

Enterprise Investment Scheme (EIS)

EIS reliefs are available to individuals who invest in shares in qualifying companies. These investors qualify for income tax relief equivalent to 30% of the investment made. This relief reduces the income tax liability of the year the investment is made or for the previous tax year.

Once the investor has held the shares for three years, any gain on their disposal is free of tax. EIS relief is also available to defer any capital gains tax liability on the disposal of other assets.

Friend Partnership Entrepreneurs and Investors Services advise potential investors and business owners wishing to secure EIS status for their company shares and encourage outside investment. If required, we will also obtain advance assurance from HM Revenue and Customs that shares will qualify for the relief.

The EIS scheme legislation is complex but at Friend Partnership, having advised on it since its introduction in 1994, we know all of its complexities very well.

Seed Enterprise Investment Scheme

Introduced in April 2012, SEIS is similar to EIS in terms of its detailed rules. The main difference with SEIS is that it is targeted specifically at new start-up businesses which have been trading for less than two years.

The legislation recognises that investments in start-ups are inherently more risky than investments in more well-established trading companies. As a result, the reliefs attached to SEIS shares are more attractive.

SEIS investors will qualify for 50% income tax relief (as opposed to 30% for an EIS investor). They will also be able to claim a capital gains tax (CGT) exemption equal to 50% of the amount they invest. These reliefs are available either for the year the investment is made or for the previous tax year.

The rules surrounding SEIS companies and investments are as detailed as those for EIS investments. At Friends Partnership we have been dealing with SEIS since its inception in 2012 and we understand all of its intricacies.

Entrepreneurs’ Relief (ER)

Introduced as a successor to Taper Relief in the 2008 budget, ER is available to individuals who dispose of their trading businesses.  It can also be claimed on the disposal of shares and other assets associated with those trading businesses.

The relief allows the individual to pay CGT on any disposal at a rate of only 10% (as opposed to 20%).

There is a lifetime limit to gains which can qualify for ER. That limit was reduced from £10 million per individual to £1 million in 2020. Despite this reduction the relief is still potentially very valuable.

Friend Partnership has helped many clients structure their businesses to ensure that, on an eventual sale, the relief is available. We have also advised on pre-sale planning and restructuring to maximise reliefs.

The rules can be complex, but with the right professional advice and implementation, access to such valuable reliefs can be achieved and substantial tax savings can be made.

EMI schemes & employee incentives

There are a number of tax advantaged company share schemes available, but many of our clients have found that the Enterprise Management Incentive (EMI) share option scheme is the most attractive.

As well as being tax efficient for the employee, EMI arrangements offer a great deal of flexibility to the employer as to which members of staff they wish to incentivise, the performance criteria they set for the scheme members and the protection the scheme provides for existing shareholders.

EMI basic rules – The employer

The employer company must be unquoted and not under the control of another company

The company must be carrying on a qualifying trade

The company must have fewer than 250 employees (or full-time equivalent) at the time the options are granted
The company’s gross assets must be less than £30 million
The maximum value of shares subject to options is £3 million, based on the market value of the shares at the date the options granted

The employee/director

The maximum value of options that can be held by the employee is £250,000, based on the market value of the underlying shares at the date of grant

The employee or director must be full-time or work a minimum 25 hours a week or 75% of available working time (whichever is the lower)

SEIS investors will qualify for 50% income tax relief (as opposed to 30% for an EIS investor). They will also be able to claim a capital gains tax (CGT) exemption equal to 50% of the amount they invest. These reliefs are available either for the year the investment is made or for the previous tax year.

At Friend Partnership, we have many years’ experience in advising on, creating and implementing EMI schemes and other share-based employee incentives (such as the issue of growth shares) for our clients.

International Tax

We act for UK companies who are subsidiaries of overseas parents and also for those with interests and activities in overseas jurisdictions.

With international clients it is vital that we give them a seamless service so that worldwide tax liabilities are identified, and managed with appropriate planning, with the help of our professional contacts in other jurisdictions.

Tax input is also important for individuals who may be crossing international borders in their personal and business lives.

We have in-depth experience of the North American market place where we have many clients and professional contacts.

The Friend Partnership tax team deals with the following:

Company

Structuring – inbound and outbound

Transfer pricing

Acquisitions and disposals

Withholding tax mitigation

Personal

Moving abroad
Non-domiciled individuals

Moving to the UK

Short term assignments

The rules can be complex, but with the right professional advice and implementation, access to such valuable reliefs can be achieved and substantial tax savings can be made.

R&D Tax Relief and R&D Tax Credits

R&D (research and development) tax relief is available to companies carrying out qualifying research and development activities. Friend Partnership has substantial experience and a 100% success rate of helping companies to successfully claim R&D tax relief

R&D Tax Relief Services

The main features of R&D tax relief are:

The company must be carrying out R&D activities, as defined

There are different regimes for large and small/medium sized companies

Enhanced corporation tax deduction of up to 230% of revenue expenditure on R&D for SMEs

Payable credit of 14.5% of any R&D tax losses which are surrendered for SMEs

100% capital allowances for any R&D capital expenditure

There is an above the line approach for large companies

Only certain costs qualify for relief

The main features of R&D tax relief are:

Identify qualifying activities

Identify qualifying costs

Deal with HMRC enquiries

Maximise your claim(s)

Secure tax payments from HM Revenue & Customs (HMRC)

At Friend Partnership team of tax specialists has dealt with many R&D tax relief claims for clients in a range of business sectors.

Theatre and cultural tax reliefs

The Creative Industry Tax Reliefs are designed to encourage film making, television programme production and other cultural activities to take place in the UK. Friend Partnership has helped several West End theatre companies and production companies to secure valuable tax relief. It is available for companies which are directly involved in the production of:

Film/Movie production

Video games

Gallery exhibitions

High-end television

Theatrical productions

Music Events

Children’s television

Orchestral concerts

Other Cultural Activities

Animated television

Museum exhibitions

The main features of the relief are:

  • Enhanced corporation tax deduction for certain production costs.

Enhanced corporation tax deduction for certain production costs.

  • Where such an enhanced deduction gives rise to a loss, that loss can be surrendered in return for an immediate tax credit equal to 25% of the loss.

Where such an enhanced deduction gives rise to a loss, that loss can be surrendered in return for an immediate tax credit equal to 25% of the loss.

Friend Partnership’s has created specific accounting and audit procedures to assist in the calculation and claiming of these reliefs. We are particularly conscious that speed is of the essence and pride ourselves on being able to obtain the relevant relief more quickly than other firms. We have also dealt with many challenges from HMRC on the availability of the relief and the value of underlying claims.

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Theatrical Productions Relief Guide
Please see our relief guide for more details on such tax reliefs and how we can help.

Friend Partnership specialists David Gillies can assist you with your creative industry tax relief claim or if you’d like to find out more about our theatre and cultural tax relief services.