You are in the company
of
Roger Warren Evans
Roger Warren Evans
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You are in the company
of
Roger Warren Evans |
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The stage, everybody thought, was set for the
Relief of Middle-class Mafeking. But they reckoned
without an uncomfortable Inland Revenue rule. It is that, when an
"unincorporated business" (in this case, the present
personal gamblers, the present "Names") become incorporated (i.e. hand their business over
to an abdroid), they must first settle up the tax liabilities of the
unincorporated business, and they are not allowed to carry forward losses
from the first business to the second! The
abdroid cannot "inherit" the
losses of the prior partnership or sole-trader business. There must be
a clean break between Business One, run by the "natural person" and
Business Two - owned and run by the abdroid.
After all they are, in law, totally different people. And the natural person,
to boot, pays
Income Tax, while the
abdroid pays
a special abdroid tax called
Corporation Tax - introduced in
1965, designed especially for abdroids
- and ne're the
twain shall meet...
But
if Lloyds Names are to be let off the Inland Revenue hook,
the same tax leeway should be granted
to all small businesses. Governments did not respond to the
travails of plumbers and electricians and millions of minor entrepreneurs
struggling to make their way as sole-traders or
partnerships, when they reached the growth-point at which "forming
a company" became sensible. Under Labour, the "small
man" should benefit from the concession now won by the wealthy Lloyds Names.
All unincorporated businesses should be allowed to carry-forward the
accumulated tax-losses of the early struggling years, and use them to off-set
against later Corporation Tax liabilities.