Tax Saving Business Structures

Table of contents

1. Basic structures for a business

1.1. Sole trader (self-employed)

1.2. General partnerships

1.3. Limited partnerships

1.4. Limited liability partnerships

1.5. A company limited by shares (limited company)

1.6. Other structures

2. General tax landscape of business structures

2.1. What makes companies unique as business structures?

2.2. Who’s taxed on business profits?

2.3. How are profits taxed?

2.4. When do profits arise for tax purposes?

2.5. When are profits taxable and when is the tax payable?

2.6. How does the timing of tax payments compare for different structures?

3. Trading losses

3.1. How are the losses of sole traders treated for tax purposes?

3.2. How are the losses of partnerships treated for tax purposes?

3.3. How are company trading losses treated for tax purposes?

3.4. How does loss relief for different structures compare?

3.5. What’s the most tax-efficient structure for trading losses?

4. Taxing profits

4.1. Unincorporated businesses v companies

5. Multiple and mixed structures for profitable businesses

5.1. Splitting income and profits using more than one structure

6. Tax structures for specific stages and purposes

6.1. Business start-ups

6.2. How can I use my company as a pension fund?

6.3. Using alphabet shares for flexible profit allocation

6.4. What is a family investment company?

6.5. Special purpose vehicles

7. Appendices

7.1. Appendix A

7.2. Appendix B

7.3. Appendix C

7.4. Appendix D

7.5. Appendix E