Government Continues Assault on SME Owners

Government Continues Assault on SME Owners

A little noticed but significant change has been announced in this year’s Budget.  Its effect is to deny corporation tax deductions for the amount of any write-off of loans to members of close companies. The change is of interest to companies who have less than five shareholders.

There is also significant restructuring in the legislation covering transactions in securities promised for later. A new” income tax advantage test” and a new exemption covering fundamental changes in ownership of close companies will also be introduced.

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