UK Limited Company Alphabet Shares, Family Investment Companies (FIC) A SMART Approach

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Understanding the different tax structures for UK limited companies is crucial for business owners. One such intriguing structure involves the use of Alphabet shares, often in what's known as a SMART setup. In this video, we explore how to implement and manage Alphabet Shares in your limited company for optimal tax benefits.
Key Dates: It's essential to watch for the corporate tax return filing deadline, generally 12 months after your accounting period for Corporation Tax ends. The deadline for tax payment is nine months and one day after the end of the accounting period.
Tax Forms: The crucial form here is CT600, your Corporation Tax Return form. Additional documents like resolutions and meeting minutes are also essential when issuing alphabet shares.
Example 1: Imagine you run a limited company with your partner and want to distribute dividends differently. Alphabet shares can be designated as 'A' for you and 'B' for your partner, allowing tailored dividend payments.
Example 2: Suppose you wish to bring in an investor without disturbing the existing dividend structure. Issuing a new type of Alphabet Share ('C' shares, perhaps) can help you maintain control while accommodating the new investor.
With Alphabet Shares, the SMART tax structure becomes a tangible reality. Subscribe and hit the notification bell for more expert advice on UK limited company taxation.