A method for comparing returns on taxable corporate bonds and tax-free municipal bonds to determine the higher after-tax return. This helps investors make more informed choices considering their tax brackets.
Franked Investment Income refers to dividends and other distributions from UK companies that, under the imputation system of taxation, were subject to corporation tax only once and exempt from further tax when received by other companies.
Group income refers to a dividend paid by one group company to another within the same corporate structure. These dividends received are not subject to corporation tax.
Corporate groups under common control can apply for group registration for VAT, allowing all group members to be treated as a single taxable entity.
A Save-As-You-Earn (SAYE) scheme is an employee savings plan common in the United Kingdom that encourages savings and offers employees the opportunity to acquire company shares through payroll deductions.
A type of corporate restructuring wherein a parent company divests itself of a wholly owned subsidiary by distributing shares in the latter to its own shareholders, making the subsidiary an independent company. This process often aims to increase shareholder value and improve the focus of both entities.
Tax planning involves the strategic structuring of a taxpayer's financial activities and affairs in accordance with relevant tax legislation to minimize tax liability. It is a legal and ethical means of reducing the overall charge to tax.
