Under current UK law and legislation, an Income Trust allows businesses to provide incentives for its suppliers, customers or creditors and claim relief against corporation tax and income tax as an allowable business expense.
By this legal strategies successfully implemented for more than 20 years, the business can fund an incentives plan, using existing statutory protection, to a tax free, trust based environment.
An interesting by-product of an Income Trust, is that there is no liability to corporation tax, income tax, capital gains tax or national insurance, on any Trust contribution or Trust growth.
Any UK resident limited company, LLP, Partnership or Sole Trader, making trading and/or investment profits are able to take advange of thid legally compliant structure. The main features of an Income Trust Features are: –
- Uses statutory reliefs
- Proven track record over more than 20 years
- Involves no tax avoidance
- Fully disclosed to HMRC
- Contributions are deductible for corporation tax and income tax reliefs
- Known and accepted by HMRC since 1994
- Approved by the House of Lords in 2005
- Outside The Finance Act 2011
- Any and all HMRC enquiries are dealt with on your behalf by our experienced lawyers and tax specialists
- All fees are fully insured
Clients can contribute profits to an Income Trust and then receive their payments free of tax . Business profits can be placed in the Trust as an allowable business expense too. Another advantage is that any assets can also be placed inside the Trust (such as holiday homes; business purchases; cars; stocks & shares etc) allowing any subsequent rents or capital appreciation of the assets to be tax free. There is no loss of control and all assets and money remains within the UK Banking System. The Income Trust is NOT an Employee Benefit Trust (EBT) as employees are not beneficiaries.
To learn more or to arrange a no-obligation chat with a member of our specialist team, then simply call us on 0333 444 0325 or email us on email@example.com