Michael McGowan

This Practice Note sets out the conditions that must be met for a distribution received by a UK corporation tax payer after 1 January 2013 to be exempt from corporation tax under the exempt class for distributions received from controlled companies. This exemption only applies to tax payers that are not ‘small’. This Practice Note is produced in partnership with Michael McGowan.

This Practice Note sets out the conditions that must be met for a distribution received by a UK corporation tax payer to be exempt from corporation tax under the exempt class for distributions received in respect of non-redeemable ordinary shares, in particular it explains the meanings of ordinary share and non-redeemable. This exemption only applies to tax payers that are not ‘small’. This Practice Note is produced in partnership with Michael McGowan.

This Practice Note sets out the conditions that must be met for a distribution received by a UK corporation tax payer to be exempt from corporation tax under the exempt class for distributions received from portfolio holdings (ie a holding of less than 10% of the issued share capital). This exemption only applies to tax payers that are not ‘small’. This Practice Note is produced in partnership with Michael McGowan.

This Practice Note sets out the conditions that must be met for a distribution received by a UK corporation tax payer to be exempt from corporation tax under the exempt class for dividends (ie not all distributions) in respect of shares accounted for as liabilities. This exemption only applies to tax payers that are not ‘small’. This Practice Note is produced in partnership with Michael McGowan.

This Practice Note sets out the four general anti-avoidance rules that prevent distributions from obtaining exemption from corporation tax. It explains what is mean by each of the anti-avoidance rules, namely schemes in which deductions are given for distributions; involving payments for distributions; involving payments not on arm’s length terms or involving diversion of trade income. This Practice Note is produced in partnership with Michael McGowan.

This Practice Note explains the four targeted anti-avoidance rules (TAARs) that prevent the application of the distribution exemption for certain distributions received by companies that are not small. The four TAARs cover: dividends that would otherwise fall within the controlled companies exemption; distributions that would otherwise fall within the non-redeemable ordinary share exemption; distributions that would otherwise fall within the portfolio holdings exemption; and schemes in the nature of loan relationships that would be exempt under any exemption other than the controlled companies exemption. This Practice Note is produced in partnership with Michael McGowan.

This Practice Note sets out the conditions that must be met for a distribution received by a UK corporation tax payer to be exempt from corporation tax under the exempt class for distributions derived from transactions not designed to reduce tax. It explains how a company can identify first whether it has any profits from transactions designed to reduce tax and then, if it does, whether a particular distribution is derived from relevant profits (ie the good profits that are not from transactions designed to reduce tax) or not. This exemption only applies to tax payers that are not ‘small’.

This Practice Note explains the key anti-avoidance rules applying in the UK to dual resident investing companies (DRICs), and also discusses what constitutes a DRIC for UK tax purposes. Produced in partnership with Michael McGowan.

This Practice Note explains the circumstances in which overseas entities are classified as either transparent or opaque for UK tax purposes by reference to the applicable case law (eg Dreyfus, Ryall v The DuBois Company, Memec and Anson) and HMRC’s interpretation and views on entity classification. Produced in partnership with Michael McGowan.

This Practice Note explains the concept of ordinary share capital and how it is defined for UK tax purposes, including in relation to overseas entities. The key UK tax reliefs that depend on the existence of ordinary share capital are also described. Produced in partnership with Michael McGowan.

An overseas entity may be characterised for UK tax purposes as transparent or opaque. This Practice Note explains how this classification will affect how the entity, and its members, are taxed in the UK. The taxation of distributions from opaque overseas entities is considered, as well as considerations such as hybrid entities, permanent establishments, double tax treaty relief, and certain anti-avoidance rules. Produced in partnership with Michael McGowan.

This Practice Note explains the meaning of a ‘small company’ in the context of the distribution exemption provisions, discussing the three parts of the test, namely: the staff headcount ceiling (under 50 employees); the turnover ceiling (not more than €10m) and the balance sheet ceiling (not more than €10m). A company is small if it is under the staff headcount ceiling and under at least one of the turnover and balance sheet ceilings. It is important to identify whether a company is small since they are subject to a different set of rules in order to benefit from the corporation tax exemption for distributions. This Practice Note is produced in partnership with Michael McGowan.