Homeβ€Ί For accounting professionalsβ€Ί General accounting discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. πŸ’š


Partnerships pays partners in Capital Gains

AntoinnetteAntoinnette Well-KnownRegistered Posts: 118
Hi everyone,
I have got an enquiry from a potential client who is a partner at a Venture Capitalist firm. He is not an invstor partner just an administrative partner so has not invested any money in the Partnership. However she has been told by the firm to declare the drawings she receives as a capital gain and to only pay capital gains tax on it. Is anyone familiar with this set up?

Comments

  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    Doesn't make any sense to me!
  • AntoinnetteAntoinnette Well-Known Registered Posts: 118
    Weird I know....but legal apparently

    Well I have been reading about it and apparently Venture Capitalist Trusts can do this. The recipients of income from them can also get Income Tax relief on the amounts they earn. HMRC says this http://www.hmrc.gov.uk/guidance/vct.htm#2
    It sounds like they give the employees shares in the company and the income is considered a gain n the disposal of shares. I intend to call HMRC and get some info on it for research purposes but at the moment its not a scheme I am familiar with so I am going to turn it down. Not worth the hussle and totally beyong my capabilities:001_tt2:
Sign In or Register to comment.