Tax consultancy focuses firstly on mitigating tax in the short term and secondly but more on importantly structuring for the long term. In the short term the focus is usually a particular event or transaction such as a purchase or sale of a business or mitigation of personal tax liabilities.
In the long term, having the right structure appropriate to your business objectives is key to mitigating tax. For example, do you have a divisional or subsidiary holding company structure or indeed parallel companies? Would there be any advantage in using an LLP as opposed to a limited company. For the individual would the use of trusts be beneficial?
We take an integrated approach to tax planning, taking into account the impact on the corporate vehicle and the individual. In particular we consider the impact of all direct taxes being Income Tax, Corporation Tax, Capital Gains Tax and Inheritance Tax. Indirect taxes, in particular Stamp Duty Land Tax and VAT are also vital issues.
We are aware of many of the tax “schemes” available in the market place and are happy to comment upon them. However HMRC’s approach to the more sophisticated and complex schemes is such that we approach them with extreme caution. Our preference is for carefully thought out structural advice to meet long term objectives and for short term advice focused on the transaction in question using the range of reliefs and allowances that are available whilst being imaginative in our approach.