EMI Options - An Update

Tax Aspects of UK Corporate Demergers

Send a text [https://www.buzzsprout.com/twilio/text_messages/2424048/open_sms] In this episode of The UK Tax Podcast, Chartered Tax Adviser John Kavanagh explains the tax treatment of corporate demergers under UK law, focusing on the three principal routes: statutory demergers, capital reduction demergers, and reconstructions by liquidation. Designed for non-specialist advisers, the episode sets out the conditions for each type of demerger, identifies key tax and legal risks, and discusses the availability of reliefs from income tax, CGT, SDLT and VAT. The episode also highlights practical issues, including HMRC clearances, solvency statements, and the relevance of shareholder approval. Aimed at general practice solicitors and accountants, this is an essential guide to navigating the technical and procedural requirements of UK demergers with confidence.

Statutory Residence Test - Common Errors

Send a text [https://www.buzzsprout.com/twilio/text_messages/2424048/open_sms] In this episode of The UK Tax Podcast, John Kavanagh looks at some of the most common errors made when applying the Statutory Residence Test. He explains the correct order in which the automatic overseas, automatic UK, and sufficient ties tests must be applied, and highlights frequent mistakes in interpreting UK days, transit days, and UK workdays. The episode also covers common misconceptions around homes, the family tie, and the 90-day tie, and examines why precise recordkeeping is critical in marginal cases. John draws on practical experience to illustrate how small missteps can have significant tax consequences. Tune in for a detailed guide to navigating the SRT and avoiding errors that could trigger unexpected UK tax liabilities.

SDLT Mixed Use and recent cases

Send a text [https://www.buzzsprout.com/twilio/text_messages/2424048/open_sms] In this episode of The UK Tax Podcast, John Kavanagh explores the rules for claiming mixed-use treatment on property purchases for SDLT purposes. He examines recent tribunal decisions, including Ridgway, Tretyakov, and Suterwalla, and considers how the courts have interpreted residential versus non-residential use at the time of completion. The episode highlights HMRC’s increasingly aggressive stance on such claims, the importance of timing and supporting evidence, and how minor differences in fact patterns can affect the outcome. John also discusses how advisers should assess the risk of enquiry before submitting a reclaim or advising on mixed-use eligibility. Tune in for practical commentary on one of the more contentious areas of SDLT and what recent cases mean for taxpayers and advisers alike.

EMI Options - An Update

Send a text [https://www.buzzsprout.com/twilio/text_messages/2424048/open_sms] In this episode of The UK Tax Podcast, John Kavanagh explains the essentials of Enterprise Management Incentive (EMI) options, a highly tax-efficient way for smaller businesses to attract and retain key employees. He covers the qualifying conditions, tax advantages, and planning points, with a particular focus on the recent changes to Business Asset Disposal Relief (BADR) rates. From April 2025, qualifying EMI share disposals may be taxed at 14%, rising to 18% from April 2026. This episode is a concise and up-to-date guide to EMI schemes in the current tax landscape.

UK Corporate Tax Residence and HMRC's approach

Send a text [https://www.buzzsprout.com/twilio/text_messages/2424048/open_sms] In this episode of The UK Tax Podcast, John Kavanagh examines the rules regarding UK corporate tax residenceand the approach taken by HMRC. He explains the UK’s central management and control test, how HMRC has challenged offshore structures, and the role of double tax treaties in resolving residence disputes. The episode also explores the growing use of the mutual agreement procedure in modern treaties and touches on the relevance of permanent establishment rules for non-resident companies. Along the way, John briefly touches on recent media reports concerning Roman Abramovich’s offshore companies and their potential UK tax implications. Tune in for expert insights into the complexities of corporate tax residence and what businesses should consider when structuring their international operations.