Huge Relief for New Investors in UK by Business Investment Relief Scheme

by Benny Gala DNS Accountants

This is very good news for those investors who want to invest in United Kingdom for the purpose of corporation. Business investment relief can provide you big relief to invest money in UK according to BIR guideline.

HMRC has changed its guidelines on BIR and this give opportunity to new investors for debut in UK corporation sector. It is updated due to 6 April 2017 effect changes for non UK domiciliary.

Carrying funds into the UK from overseas could attract a UK tax charge if the funds contain income and increases that have not been accountable to UK tax, but provided the rules for BIR are followed funds can be brought into the UK without a tax charge.

In order for oversees income or expansions to qualify for relief from UK tax, the following conditions must be met:

The speculation is a qualifying investment made in a target company, within 45 days of the foreign income and gains being brought to the UK, and

The taxpayer must claim relief from UK tax under this provision as part of their self assessment tax return.


Changes include:

An addition of the time limit from two years to five years for the target company receiving the investment to start trading and,

If there has been a withdrawal of value from the business justifying steps can be taken to avoid losing the relief but there will be no extraction of value if the payment received by the relevant person for a disposal is:

Subject to revenue tax or company tax or would be if the relevant person were liable to such tax or

Paid or provided to the relevant person in the ordinary course of business and on arm’s length terms.

If you are non UK residents and want to advantages of business investment relief so you need to invest in UK within 45 days you need to self-assessment tax return.

About Benny Gala Senior   DNS Accountants

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Joined APSense since, June 30th, 2017, From Harrow, United Kingdom.

Created on Apr 30th 2018 09:43. Viewed 226 times.


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