Grham Purvis from Robson Laidler LLP said “For business owners, this is a particularly crucial issue as there are different ways of extracting value from a business, which attract different levels of tax. Within a company, directors have the options of taking dividends, receiving cash bonuses or paying additional pension contributions, while unincorporated business owners need to take decisions on whether to withdraw capital from the company, or leave it in.
“The forthcoming changes to personal taxation mean capital and corporate taxes are now significantly lower than income tax, and taxpayers need to consider whether alternative methods of receiving income may now be more effective, including bringing forward income, deferring expenditure and restructuring investments to realise capital rather than income”
With personal tax rates returning to levels not seen since the 1970s, high earners need to begin planning now for how they can minimise the effect of the proposed changes. For more information or advice please contact us.
Notes to editors
For more information contact Graham Purvis of Robson Laidler LLP: Direct Line 0191 2818191, Email gpurvis@robson-
These comments are offered for publication on the understanding that our contact information is included.
The writer would appreciate details of the publication date if this article is released for publication.
