Rich Pickings From Pastures New
If your business is setting up a new venture, then consider whether it would be appropriate to establish a separate business entity to undertake this move.
There are significant tax advantages that could derive from using a separate company or stand-alone LLP to house a new venture.
This could be the case in a diverse range of circumstances including ventures where:
• You are seeking to motivate and incentivise senior staff;
• VAT planning may be an issue;
• the venture may be loss-making at the outset;
• motor cars, boats or other luxury items may come into play; or where a whole host of other issues may be relevant.
A new venture could include anything as varied as:
• A joint venture with another business.
• Expansion of part of the current business under the management of a new employee.
• A move into a new product or service.
• Expansion into a different geographical market.
• Taking on a new class of customers.
Action: If you are considering this sort of expansion be sure to discuss it first with your professional advisors to ensure you enjoy the maximum commercial and tax advantage.
“There are significant tax
advantages that could derive from
using a separate company or standalone
LLP to house a new venture.”