Helping asset managers with their UK corporate tax filing requirements, including compliance and registration matters for the corporate entity, advice on the application of any reliefs and incentives and transfer pricing matters for the group.
When undertaking the tax compliance for the corporate entity, it is not only important to understand the straightforward corporation tax computation, but consideration also needs to be given to the more complex tax legislation that may impact the corporate structure, including:
- Maximising any reliefs and incentives such as R&D relief, loss reliefs, capital allowances and other reliefs available based on the structure of the group.
- Considering any implications of the mixed membership rules (introduced in 2014) that look to ensure that a corporate member in a LLP does not receive an excess profit allocation compared to the other individual partners (given the lower rates of corporation tax compared to income tax in the UK).
- As asset managers typically operate across multiple jurisdictions, it is essential to understand the transfer pricing implications for the UK corporate entity as part of the overall compliance process.
- With UK corporation tax rates rising, asset managers will need to consider the pros and cons of operating through a partnership vs a corporate structure to determine the most appropriate structure for their business.
- With the evolution of technology, as the UK moves towards ‘making tax digital’, asset managers will need to change their approach to tax compliance and ensure that tax compliance processes are resilient to changes and prepared for any disruption caused in the interim.
How we can help:
- Assist businesses in identifying the most suitable structure based on its needs and consider the pros and cons of a partnership vs a corporate structure;
- Annual tax compliance, registration and submission of corporation tax returns to HMRC (including provision of a tax note for the accounts and conversion of accounts to iXBRL format where required);
- Advice on any transfer pricing adjustments required in the corporation tax return;
- Advice on reliefs and incentives available to the corporate entity, including R&D tax relief and capital allowances;
- Advice on employment related securities implications where employees are awarded shares in the business, along with assistance with any HMRC filing requirements (e.g. section 431 elections, Form 42 annual filing etc.);
- Advice on corporation tax payments, e.g. assisting with calculation of quarterly instalment payments and sending timely reminders, as required; and
- Assist with responding to any compliance related queries from HMRC.