Study For Tax In Your Coffee Break

Thank you to Amicus: Search and Recruitment for Sponsoring this episode. To find your next Finance or Accounting Role, head to https://amicus.ie/ and tell them that we sent you!In this episode, Paula Byrne delves into the topic of liquidations, discussing the tax implications and various scenarios that can arise when a company goes into liquidation. She covers aspects such as chargeable gains, balancing charges, close company transactions, and the potential for shareholders to claim certain reliefs.Topic List for this Episode: Overview of Liquidations:Explanation of liquidation scenarios, including solvent and insolvent companies.Negligible value claims and loss carry forwards.Tax Implications on Asset Disposals:Chargeable gains and balancing charges on plant and machinery.Corporation tax rates applicable to chargeable gains.Sales to Shareholders:Market value sales vs. undervalued sales.Ring fencing losses and close company implications.Base cost adjustments for shares.Calculating Available Cash for Distribution:Determining cash inflows and outflows.Accounting for disposal proceeds, bank balances, receivables, payables, bank overdrafts, and long-term loans.Capital Gains Tax (CGT) for Shareholders:CGT liability on remaining cash distributions.Entrepreneurial and retirement reliefs and their respective conditions (appointment timelines for liquidators).Thank you for listening to Study For Tax in your Coffee Break! If you enjoyed the episode, make sure to leave a rating and review on your Podcast platform and share it with others to let them know you enjoyed the podcast.If you'd like to purchase the books from which the content of this podcast is made, head to https://paulabyrne.ie/tax-books/.Thank you to Matthew Bliss for editing and production of this episode. If you'd like him to edit your podcast, send an email to [email protected] or head to https://www.mbpod.com/.

Thank you to Amicus: Search and Recruitment for Sponsoring this episode. To find your next Finance or Accounting Role, head to https://amicus.ie/ and tell them that we sent you!*****In this episode, Paula talks about the different tax considerations related to Share Buybacks for companies, and the reliefs available when a company deftly manages whether CGT or Income Tax is required in each scenario.Topics Covered:Overview of Share BuybackGeneral explanation of share buyback.Context in exams - a case study where a company buys back shares.Income Tax vs. Capital Gains Tax (CGT) TreatmentDefault treatment as an income tax event under schedule F.Preferable treatment as a CGT event and why (lower tax rate at 33%, CGT reliefs).Conditions for CGT TreatmentThe company must be a trading company or a holding company of a subsidiary.Shares must be in an unquoted company.Shares must have been held for five years by an Irish resident individual.Redemption must be for the benefit of trade.Substantial reduction in the shareholder's interest (25% reduction, shares 30% or less post-redemption).Examiner's IndicatorsRecognizing share buyback questions in exam cases (e.g., shareholders not getting along, detrimental to the company).Tax Reliefs for Qualifying ShareholdersEntrepreneurial relief and retirement relief.Potential to pay no tax on share buyback.Treatment for Non-Qualifying ShareholdersTaxed under schedule F.Tax calculation: agreed buyback price minus nominal value of shares.Rate of tax at marginal rate.Withholding tax at 25% by the company.Special ConsiderationsDistinction from close company transactions.Capital loss for those taxed under income tax.Company's Perspective on Share BuybackPotential stamp duty liability.No stamp duty if shares are converted to redeemable preference shares first.Thank you for listening to Study For Tax in your Coffee Break! If you enjoyed the episode, make sure to leave a rating and review on your Podcast platform and share it with others to let them know you enjoyed the podcast.If you'd like to purchase the books from which the content of this podcast is made, head to https://paulabyrne.ie/tax-books/.Thank you to Matthew Bliss for editing and production of this episode. If you'd like him to edit your podcast, send an email to [email protected] or head to https://www.mbpod.com/.#taxation #CGT #incometax #ireland #paulabyrne #stampduty #accounting

Thank you to Amicus: Search and Recruitment for Sponsoring this episode. To find your next Finance or Accounting Role, head to https://amicus.ie/ and tell them that we sent you!*****In this episode, Paula talks about the tax implications of when a sole trader incorporates.Topic Outline:The Concept of Incorporation ReliefDefinition: Transition from sole trader to limited companyImportance: Practical implications in taxation and examinationsTax Heads Involved in IncorporationIncome TaxCorporation TaxCapital Gains Tax (CGT)Stamp DutyCapital AllowancesValue Added Tax (VAT)Thank you for listening to Study For Tax in your Coffee Break! If you enjoyed the episode, make sure to leave a rating and review on your Podcast platform and share it with others to let them know you enjoyed the podcast.If you'd like to purchase the books from which the content of this podcast is made, head to https://paulabyrne.ie/tax-books/.Thank you to Matthew Bliss for editing and production of this episode. If you'd like him to edit your podcast, send an email to [email protected] or head to https://www.mbpod.com/.

Favourite ex student Pat Dolan, from Amicus Recruitment, gives some very generous advice.