Summer 2005 Newsletter Content More of the same? Around the world Hot tips Inside out? Sweet sacrifice Simple trust Done and dusted? Open immediately File under E An Inspector calls CO still OK Open for business High PHI Arctic chills Duty calls Pensions Fuelling around WIP round Win some, lose some Take it and go? Party talk Work less, earn less Making adjustments

Take it and go? There's a long-standing rule that 'golden handshakes' aren't taxed if they are up to £30,000. A lot of people believe that this exempts a leaving payment in any circumstances - unfortunately, the Revenue aren't quite that generous, and they find plenty of reasons for denying golden handshake treatment. There have been quite a few cases recently where a business proprietor has sold up and has taken £30,000 out of the company as part of the deal. It might be possible for this to be a true golden handshake, but the Revenue will certainly look at it closely - and they have been winning all the cases that have gone to court on the issue. In a couple of cases, it was striking that the Revenue argued about other aspects of the deal that seemed quite reasonable. It may be that trying for the £30,000 is considered so aggressive that the Revenue will then suspect everything, and given that they have started an argument about the handshake, they might as well argue about the rest. If you are selling up, it's definitely a time to take advice about the best way to structure the deal - there are almost too many choices, and some come with a much lower tax cost than others. But don't assume that you can take £30,000 out with no tax at all. We will be happy to advise you about what's possible.