ABSTRACT
This chapter highlights areas of taxation that are likely to impact on a business, and looks at the opportunities there are to reduce the amounts that are payable on the income generated by a business. The taxes payable on business profits are income tax, corporation tax, value added tax and capital gains tax. The Tax Authorities can query the value of a property on the return, and charge the tax plus interest and penalties if they consider that there had been a deliberate under declaration of the value. Stamp Duty Land Tax is paid on property purchases in the UK. The percentage amount payable depends upon the property being purchased, and whether an individual or limited company is buying the property. Tax relief can be claimed on fixtures, fittings and equipment used in the business, by way of a writing down allowance, and the writing down allowances currently available vary, depending upon the asset type.
