Corporate tax planning

Companies pay corporation tax on income profits and on capital gains. In order to minimise the amount of corporation tax a company should pay, it is essential that a company undertakes corporate tax planning as it can save a company millions of pounds. The methods of corporate tax planning are highly complex and it is important that a company instructs an expert to assist them.

There are many reliefs from corporation tax available and it is important for a company to use corporate tax planning to receive the correct relief, in the correct tax year, if they are to minimise the corporation tax paid. As an example of this, consider that a company makes a trading loss in one tax year. That loss is subject to a tax relief, but how a company claims that relief will make a difference to how much relief the company gets. The company must decide whether to use the relief on previous years’ profits, current profits or future profits.

In order to decide where to use the relief, the company must consider what their profits were in previous years and what the projected profits are for future years. The company will also need to consider if it is worth taking less relief now to get money from HMRC sooner, or whether they are able to wait for the money until following tax years. A company must plan for future events such as large sales and purchases, so that they minimise the corporation tax paid and therefore maximise return for investors.

If you would like to obtain legal advice on corporate tax planning strategies, Contact Law can put you in touch with a local specialist Corporate Tax Solicitor free of charge. So, if you have any questions or would like our help in finding local Corporate Tax Solicitors please call us on 0800 1777 162 or complete the web-form above.