Pah! What do they know? Bunch of old fuddy-duddies. :-)
Who's to say you didn't buy the stock personally and only transferred it into the business immediately prior to selling to punters? Then the business would make zero profit, but the trader personally would be taxed on the profit inherent in transferring the stock *into* the business at market value.
"Doug Ramage" wrote
No idea - but it was the client (donor of bubbly) who pointed out to the (self-employed) workers that the bubbly should be declared to I.R.!
If someone say, won the lottery, and decided to make a few large gifts to friends and family - would there be a liability there?
Not for income tax. It's a potentially excempt transfer for IHT.
next question:-)
tim
tax avoidance..... were it to work
tim
To avoid IHT and/or Income Tax, I assume?
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