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Business warned over 50% tax strategies

by Kevin Reed

More from this author

22 Feb 2010

Trying to duck the 50% tax rate could hit businesses later on in the business cycle.

Accelerating cash payments before the new tax comes into effect could prove problematic if staff then underperform or leave unexpectedly.

Restructuring share awards was one alternative, as they can be forfeited in certain circumstances. Other are deferring bonuses altogether in the hope that the tax rate will fall, reported the FT.

Further reading:

Property companies make partners to beat 50%

BBA pooh-poohs global banking ‘tax’

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