

Crowdfunding, the lame duck investment method (due to UK tax laws) - paulsilver
http://realbusiness.co.uk/news/crowdfunding-the-lame-duck-investment-method

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bdfh42
First off I am not an accountant but (as usual) the downside is overstated to
gee up the audience.

Yes there would be a VAT (Sales tax to those outside the EU) liability where
goods or services were supplied - and that would need to be taken into account
when setting values.

Ignoring VAT - yes the sum "invested" by participants would have to be entered
into the accounts as income received but corporation tax would only be payable
on any net profits for the business at the end of the company financial year.
There is no tax on income - only profit.

