One of the possibly unintended consequences of the chancellor's recent Budget 50% tax rate hike is the encouragement of private and family businesses to keep their profits within the business.
Although withdrawing money from a company attracts corporation tax at 25%, if that then goes into a personal account it is taxed at 40% to 50% for higher rate tax payers (the 50% rate effective for those earning over £150k from April 2010).
Keeping the funds in the business is a viable choice for those who don't need the money right now personally. The business can invest the money, upon which any profits are only going to be taxed at 25%.
If and when the business gets sold, the owners will only have to pay an 18% tax on the capital gain, with only 10% payable on the first million pounds.
Bring to the market this leasehold specialist car sales and servicing facility located in Horncastle, Lincolnshire. The trade was established as a limited company in 2005.
LEASEHOLD
The company is an online vehicle purchasing platform, providing a fast, hassle-free car-selling service for the end user. A competitor to the likes of webuyanycar.com and Motorway, the company is a well-established online vehicle purchasing platform...
Bringing to the market this denim and casual wear retailer, boating a user friendly comprehensive online presence.
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