Agreed that the use of the term "Salary Sacrifice" was confusing/incorrect. It was a question as to whether the forgoing of bonuses in gross form could be used to clear down the loan. I have said it doesn't work to the person who suggested it but just wanted to be sure I was right to say that.
It is a personal investment.
It is a one-off that came up only though knowing the family.
There is a UK trading company that could make the investment but allowing the marketing/sponsorship expenses would be hard to justify on the UK based trading business.
They may want to retire and sell or close the UK business before this agreement ends and not want it in the company for that reason anyway.
Your advice regarding the legal strength of the agreement has been pointed out already and I will reinforce that..
I cannot put the agreement or more detail due to confidentiality but these comments are all extremely useful and greatly appreciated.
Thank you TD (and other respondents). I think you are where I am.
If the client proceeds he is going in with his eyes wide open and knows
1 he could lose the lot,
2 will have to pay tax on the income/return on investment if it ever happens and
3 the best he can get on a loss is likely to be a loss for CGT purposes (which is only useful if there is a gain to use it against).
I was looking at various parts of the Revenue Manuals last night and finding dead links etc. The link you have sent me is exactly what I was after. Common sense rules by HMRC but nice to see before submitting the claim all the same.
Thank you simpleson The capital receipt and going non rsident was about my only useful thought. As you say we need a lot more detailed info but very interesting other observations you make.
My answers
Thank you Pater, much appreciated. No other loans and not a director but spot-on observations.
Agreed that the use of the term "Salary Sacrifice" was confusing/incorrect. It was a question as to whether the forgoing of bonuses in gross form could be used to clear down the loan. I have said it doesn't work to the person who suggested it but just wanted to be sure I was right to say that.
Thanks - my view was it doesn't work. Just wanted to be sure I am right! Appreciated the answers thus far that seem to confirm my thinking.
Sounds interesting though! I googled it but couldn't find it.
Thank you AA. Very helpful and much appreciated.
Thank you WT
Your comments are all sensible.
It is a personal investment.
It is a one-off that came up only though knowing the family.
There is a UK trading company that could make the investment but allowing the marketing/sponsorship expenses would be hard to justify on the UK based trading business.
They may want to retire and sell or close the UK business before this agreement ends and not want it in the company for that reason anyway.
Your advice regarding the legal strength of the agreement has been pointed out already and I will reinforce that..
I cannot put the agreement or more detail due to confidentiality but these comments are all extremely useful and greatly appreciated.
Thank you
Thank you TD (and other respondents). I think you are where I am.
If the client proceeds he is going in with his eyes wide open and knows
1 he could lose the lot,
2 will have to pay tax on the income/return on investment if it ever happens and
3 the best he can get on a loss is likely to be a loss for CGT purposes (which is only useful if there is a gain to use it against).
Other comments still appreciated.
EIS claim
Thanks mhtax.
I was looking at various parts of the Revenue Manuals last night and finding dead links etc. The link you have sent me is exactly what I was after. Common sense rules by HMRC but nice to see before submitting the claim all the same.
Thanks again.
Thank you simpleson
The capital receipt and going non rsident was about my only useful thought. As you say we need a lot more detailed info but very interesting other observations you make.
Thank you.
thanks
Thank you Ramnic - this is a small business so no capital account but the priciple should hold true.
Thanks again