The issue of incorporation for dentists has become more complex following both the 2014 Autumn Statement and the 2015 Budget. Alan Suggett is a specialist dental accountant and a member of the NASDAL technical committee and believes incorporation can still be advantageous for some dentists.
He explains how the potential tax benefits of incorporation have been impacted:
-
Full CGT (28%) payable at sale of goodwill to the limited company (rather than 10% under Entrepreneurs Relief)
-
Abolition of Corporation Tax Relief on 'amortisation' of goodwill in the limited company. This effectively means additional tax payable of 20% of the goodwill value
-
Abolition of the tax credit on dividends. This leads to an extra income tax charge of 7.5% on dividend income taken from limited companies (other than the first £5,000).
As a consequence, he says, various planning schemes have been devised, but not all are practical and depending on individual circumstances, might be inadvisable. Advice from a specialist dental accountant and lawyer is essential.
To contact Alan, email alansuggett@unw.co.uk or to find out more about NASDAL, go to www.nasdal.org.uk
Rights and permissions
About this article
Cite this article
Incorporation latest. Br Dent J 219, 142 (2015). https://doi.org/10.1038/sj.bdj.2015.623
Published:
Issue Date:
DOI: https://doi.org/10.1038/sj.bdj.2015.623