Tax exemption for new companies

[yoganmahew]

askaboutmoney.com/showpost.p … stcount=21
Thanks to evilal (I presume one and the same?) for putting me out of my misery:

(a) In this section ‘qualifying trade’ means a trade which
is set up and commenced by a new company in 2009
other than a trade—
(i) which was previously carried on by another per-
son and to which the company has succeeded,
(ii) the activities of which were previously carried on
as part of another person’s trade or profession,
(iii) which is an excepted trade, or
(iv) the activities of which if carried on by a close
company with no other source of income, would
result in that company being a service company
for the purposes of section 441.

Well, that kiboshes the knowledge economy company I was going to set up selling IT services to companies around the world (an extension of the business I’m currently in). By the looks of it, not only have they closed all the loopholes, but also closed off any chance of a viable business - it looks to me like you are only allowed to start a company in something you have no experience in!

What a fucking joke! (that’s why I didn’t reply on AAM!). Again I appeal to be told it is not true and that I, as someone who already works in IT, could set up an IT consultancy firm and avail of the tax breaks?

[random_punter]

What companies aim to make a profit in their first year anyways?

[yoganmahew]

@random punter

What companies aim to make a profit in their first year anyways?

It’s a 3 year exemption, I believe.

[evilal]

There can be only one (evilal)!

I do think that there are some possible ways to use this, but I have to ask my accountant; for example, if you currently service countries A, B and C can you set up a subsidiary to service country D and claim it as an exempted startup? I suspect not if it’s the same type of business. But not sure what exactly counts…