Taxing changes for firms.
Q: We are considering changing our business from a partnership to a limited liability company. Could...
Q: We are considering changing our business from a partnership to alimited liability company. Could you outline the tax implications of doing
this?
A: The tax implications of such a transfer are complex - careful timing
and sound professional advice should always be sought. The following
points should be borne in mind.
Excess profits can be sheltered from being liable to a corporation tax
rate of 20% compared to an Income Tax rate of 40% and
director/shareholders can protect their personal assets
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