Kuits Solicitors

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Kuits Strengthens its Corporate and Commercial Team with Another Senior Hire08-Sep-2015

Manchester law firm Kuits has added another senior hire to its growing Corporate and Commercial ..

Kuits completes two landmark deals for The Class of ‘9227-Aug-2015

Manchester commercial law firm Kuits Solicitors have today completed two landmark deals on behal..

Kuits Celebrates Significant Promotions Round after Successful Year13-Aug-2015

Manchester commercial law firm Kuits is celebrating the promotion of eleven members of its team ..

Important Costs Victory for Landlords10-Aug-2015

Many claims by landlords can often be for an amount of less than £10,000. The relevance of..

Kuits secures purchase of Wrexham shopping center for Manchester-based Meadows Estates04-Aug-2015

Commercial law firm Kuits Solicitors has advised a private property investor in the purchase of ..

The Supreme Court confirms test for goodwill in passing off actions31-Jul-2015

The recent Supreme Court decision of Starbucks (HK) Limited and others v British Sky Broadcastin..

Kuits advise on Lyons share of Manchester’s new food and drink spots30-Jul-2015

Manchester commercial law firm Kuits has had a busy first quarter advising the operators behind ..

Defaulters beware: you’re in for a scare24-Jul-2015

The case of Mr and Mrs Aly hit the headlines last week when HHJ Mark Rogers ordered Mr Aly to ha..

Grandparents: the silent sufferers when their children get divorced17-Jul-2015

When parents get divorced, they are encouraged to sort out arrangements for any children between..

Four Tips for Getting the Most Out of your IT Suppliers 15-Jul-2015

These days, most businesses live and die by their IT systems. We all know the feeling when a cr..

2015 Budget in Brief08-Jul-2015

Following today’s budget, we have prepared a review of the key points as broken down into ..

A mother on the run: Rebecca Minnock’s attempt to take the law into her own hands29-Jun-2015

Runaway mother Rebecca Minnock plagued the news last week after she went into hiding with her so..

Is rush hour set to become a happy hour for employees?29-Jun-2015

Whether its gridlock on the M6, or a cancelled or redirected train, our traditional early mornin..

Prenuptial agreements: what, why and how25-Jun-2015

When anyone gets married, they truly hope it will last forever; however, unfortunately this isn&..

Commercial Common Sense and the Interpretation of Service Charge Clauses19-Jun-2015

A recent appeal dismissal by the Supreme Court highlights the very real need to check over any c..

The Deregulation Act 2015 – important changes for landlords and tenants19-Jun-2015

The Deregulation Act 2015 came into force on 26 March 2015. The Act aims to clarify issues which..

Resolution’s Family Law Manifesto 2015: How the Law Needs to Change08-Jun-2015

Resolution have recently published their manifesto setting out the six things they believe the g..

Kuits advises Tommy Tucker on purchase of RJ Foods05-Jun-2015

Manchester commercial law firm Kuits Solicitors has advised family-run confectionary giant Tommy..

A Spoonful of Caution: What Mary Poppins teaches us about employing domestic workers in the home20-May-2015

One thing that most people probably don’t think about whilst enjoying a family movie night..

One rule for him and another for her as Oklahoma Supreme Court dismisses Sue Ann Arnall’s appeal11-May-2015

In November 2014, Harold Hamm, the CEO of Continental Resources, was ordered to pay his ex-wife ..

Let’s stop the blame game - the argument for no-fault divorce05-May-2015

‘Nobody likes a snitch’ is how the playground saying goes. Yet ‘snitching&rsqu..

Pre-nups: do they suggest the marriage is over before it’s even begun?16-Apr-2015

With pre-nuptial agreements on the rise in the UK and judges seemingly becoming more and more wi..

Kuits advises on opening of new arts hub HOME15-Apr-2015

Manchester law firm Kuits Solicitors has advised on the opening of new cinema, theatre and art c..

5 Things Rights Holders Should Think About When Negotiating a Successful IP Licence27-Mar-2015

Licences can provide IP rights holders with a fantastic way to exploit their valuable (but usual..

Kuits advises Manford’s Comedy Clubs in agreement with Tiger Tiger25-Mar-2015

Manchester law firm Kuits Solicitors has advised Manford’s Comedy Clubs, an entertainment ..

Transparency in Company Ownership: What Shareholders Need to Know about the New Proposals23-Mar-2015

The Department for Business, Innovation and Skills has published a paper on new proposals regard..

Swaps Compensation – Time is running out!17-Mar-2015

We have successfully recovered significant amounts of redress compensation for many of our clien..

Go and get a job? The case for and against Tracey Wright09-Mar-2015

The divorce case of Tracey Wright has hit headlines hard recently after a judge told her t..

Kuits Proud to Support Manchester International Festival 201506-Mar-2015

Kuits Solicitors is once again supporting Manchester International Festival as a Corporate Membe..

Law Firms from Across Europe to Attend TAGLaw Conference in Manchester04-Mar-2015

This weekend Manchester law firm Kuits Solicitors will play host to over 60 lawyers from over 25..

Divorce and the Court: how to litigate whilst remaining amicable 02-Mar-2015

Kuits Solicitors are currently running a campaign ‘Divorce: let’s get it right&rsquo..

Alternative Dispute Resolution: how to keep your divorce on-track and out of court25-Feb-2015

As part of Kuits Solicitor’s campaign ‘Divorce: let’s get it right’, its..

Should I stay or should I go? How to know when a marriage is worth saving19-Feb-2015

With Valentine’s Day having just passed, spouses across the country will have spent the da..

Kuits advises Violet Hospitality on the launch of Urban Cookhouse 17-Feb-2015

Manchester law firm Kuits Solicitors has advised Violet Hospitality on the launch of its debut s..

What taxpayers with Swiss accounts need to know about HMRC’s disclosure pack10-Feb-2015

Over the last year or so, HMRC have been contacting taxpayers with Swiss bank accounts who autho..

What’s in a name?: Companies House Ordered to Pay Out over Clerical Error09-Feb-2015

The importance of accurate registration was highlighted very recently when it emerged that an er..

A Year in Review: What 2014 Should Teach Employers about 201505-Feb-2015

2014 was an interesting year for employment law. Statutory discrimination questionnaires have be..

Artist divorce case highlights sexism of the UK courts - and it’s not the women who are suffering01-Feb-2015

A stay-at-home father who was supported by his millionaire wife is appealing a court decision th..

Does Hohn confirm that the family courts have lost their intellectual ability?29-Jan-2015

The highly anticipated Hohn judgement was delivered in full on 12th December 2014. Although it h..

Causing Offence: What We Should Learn from EAT’s First Twitter Case 28-Jan-2015

In the recent case of Game Retail Ltd v Laws (UKEAT/0188/14), the Employment Appeal Tribunal (EA..

Kuits advises Class of ‘92 on Salford City FC BBC documentary22-Jan-2015

Manchester law firm Kuits Solicitors has advised Class of ’92 stars Gary and Phil Neville,..

The A Word: Ramsay Loses High Court Battle over Lease Document Signed by Ghost Writing Machine21-Jan-2015

A recent dispute has hit the headlines partly due to its high-profile claimant, the fiery celebr..

Cohabitation and marriage: spot the difference15-Jan-2015

The Cohabitation Rights Bill has recently received its second reading in the House of Lords. Cre..

Kuits Awarded Elite Ranking in Chambers UK Guide 2015 13-Jan-2015

Manchester commercial law firm Kuits has once again been awarded an Elite Top Tier Ranking in th..

It’s nearly Divorce D-day but does it really exist? And, if so, can we really blame the turkey?24-Dec-2014

Not a year goes by without a newspaper article being written about the arrival of Divorce D-day ..

Lessons from Thiry: The important distinction between financial and litigation misconduct23-Dec-2014

Property tycoon Didier Thiry has been ordered to pay his ex-wife Alisa Thiry £17 million i..

6 Tips for Employers for a Merry Christmas19-Dec-2014

With the festive season upon us, Kuits Employment team are here to provide you with 6 top tips f..

European Court rules that obesity can constitute a disability19-Dec-2014

A recent European Court of Justice (ECJ) decision has found that a 25-stone Danish child minder ..

The Legislative Reform (Entertainment Licensing) Order 2014 19-Dec-2014

The Legislative Reform (Entertainment Licensing) Order 2014 which further relaxes the licensing ..

Hohn divorce settlement secures the UK’s position as the divorce capital of the world09-Dec-2014

It has been an exciting few weeks in the world of divorce settlements. Less than a month after A..

Kuits advises mining outfit Ironveld plc on share capital raising05-Dec-2014

Manchester commercial law firm Kuits has advised Ironveld plc, an AIM-traded mining company, on ..

Is your Business Clear on Allergens?01-Dec-2014

The Food Information for Consumers Regulations come into force on 13th December 2014, bringing a..

What Employers Need to Know about the New Shared Parental Leave Regulations01-Dec-2014

The new shared parental leave (SPL) regulations are in force from today (1 December 2014). The ..

Now the legal aid cuts to family law have set in, what is the real cost of them?28-Nov-2014

In an attempt to reduce the legal aid bill by £350 million per year, huge cuts came into f..

Family Dispute Resolution Week: A Look at Mediation24-Nov-2014

Mediation will make the divorce process quicker, fairer and more empowering for both parties, sa..

Billionaire Hamm’s is one of the biggest divorce settlements in history, but is it big enough?21-Nov-2014

American entrepreneur Harold Hamm, best known for his position as CEO of Continental Resources, ..

If a clean break is so desirable, why do Joint Lives Maintenance Orders still exist?10-Nov-2014

The Divorce (Financial Provisions) Bill received its second reading in the House of Lords in Jun..

If you like it then should you put a ring on it?07-Nov-2014

Times have changed – and on the whole these changes are for the better. We are now living ..

What Employers Need to Know about the New EAT Rules on Holiday Pay and Overtime05-Nov-2014

The much-anticipated judgment of Hertel, Amec v Wood and Others, regarding holiday pay, was deli..

National Fertility Awareness Week: 6 Things You Need to Know about Surrogacy31-Oct-2014

During this National Fertility Awareness Week (w/c 27th October 2014), our family team takes a l..

Kuits Awarded Top-Tier Firm Status in Legal 500 UK 2014 Rankings17-Oct-2014

Manchester law firm Kuits has been awarded a North West Top-Tier Firm recommendation in the Lega..

Antenatal appointments14-Oct-2014

On 1 October 2014, changes to the Children and Families Act 2014 meant that certain individuals ..

Kuits advises on opening of new Spinningfields restaurant Fazenda10-Oct-2014

Manchester law firm Kuits Solicitors has advised on the opening of new Brazilian restaurant Faze..

Kuits advisesThe Ivy's Former Head Chef on second Fish and Chip Shop opening in the City09-Oct-2014

Manchester law firm Kuits Solicitors has advised Des McDonald, the former chief executive of Cap..

Kuits Announce the Promotion of Five New Partners and Three Associates07-Oct-2014

Manchester law firm Kuits has announced eight major promotions, adding five more partners and th..

Mandatory Conditions Update01-Oct-2014

You will remember that on 28th May 2014 the mandatory conditions attached to all premises licenc..

Kuits Secures Licensing Deal for The Manufacturing Institute 17-Sep-2014

Manchester law firm Kuits Solicitors has successfully conducted international copyright and trad..

Kuits' Executive Partner Addresses 'No Safe Havens' Tax Conference in Tel Aviv09-Sep-2014

Kuits Solicitors’ Executive Partner Robert Levy (http://www.kuits.com/meet-the-team/robert..

Keeping the employment contract alive when employees abandon ship22-Aug-2014

Receiving news that an employee will be leaving the company can be stressful for an employer, no..

SWAPS Update: Is a Basic Redress Offer Fair?22-Aug-2014

Following on from our last update (http://www.kuits.com/news/update-mis-selling-of-swaps) on the..

Kuits advises Hollowood Chemists in its purchase of J Simpson Chemists and Clamary Limited19-Aug-2014

Manchester commercial law firm Kuits has advised pharmacy group Hollowood Chemists Limited in it..

Kuits advises New World Trading Company on The Botanist opening07-Aug-2014

Manchester law firm Kuits Solicitors has advised New World Trading Company on the opening of the..

Kuits advises Peakdale Molecular on £12m sale of shares 08-Jul-2014

Manchester commercial law firm Kuits has advised leading drug discovery firm Peakdale Molecular ..

Kuits acts for Paul Scholes on new column for Paddy Power10-Jun-2014

Manchester law firm Kuits has advised on the negotiations surrounding Paul Scholes’ contra..

Ban on the sale of alcohol below the cost of duty plus VAT28-May-2014

On 28th May 2014, a government ban on the sale of alcohol below the cost of duty plus VAT came i..

Kuits advises on Ledley King Testimonial at Spurs09-May-2014

Manchester law firm Kuits Solicitors has advised on the negotiations surrounding the testimonial..

Update: Mis-selling of swaps08-May-2014

Kuits has been in close contact with those of our clients involved in the Financial Conduct Auth..

Family Justice Reforms23-Apr-2014

The family justice reforms, which have been described as “the largest for a generation&rdq..

New Consumer Contracts Regulations – Is Your Business Prepared?23-Apr-2014

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 will ..

Kuits advises Accurist on sale of its business to Time Products11-Apr-2014

Kuits Solicitors, the leading commercial law firm based in Manchester, has advised Accurist Watc..

SSP Reforms: The Impacts on your Business04-Apr-2014

Starting from April 6, the introduction of an independent assessment service means that employer..

Game Changer For Landlords 24-Mar-2014

Until recently the law in administrations was that if a quarter’s rent is payable in advan..

Distress not an option for commercial landlords19-Feb-2014

One of the most effective options available to landlords of commercial property in the event of ..

Does your business need a BYOD policy?19-Feb-2014

BYOD (bring your own device) refers to the increasingly common practice of employees using perso..

Government issues guidance on international surrogacy19-Feb-2014

Surrogacy is becoming increasingly popular with couples who wish to grow or start a family. Man..

CRAR UPDATE18-Feb-2014

This Bulletin should be read in conjunction with the website article Time is Ticking (http://www..

Pre-Nuptial Agreements – soon to become legally binding?10-Feb-2014

The Law Commission is set to publish a report on Matrimonial Property, Needs and Agreements on 2..


The latest revisions to TUPE* are in pale contrast to sweeping changes first talked about in Jan..

Discretionary bonus payments and divorce05-Feb-2014

In the event of divorce or dissolution of civil partnership, one of many financial Orders that t..

Daily Internet Purchases Namehog 27-Jan-2014

Manchester Solicitors Manchester law firm, Kuits Solicitors has advised AIM listed internet host..

Kuits Shortlisted for Medium Law Firm of the Year 24-Jan-2014

Manchester Solicitors Kuits Solicitors in Manchester, England has been shortlisted for the Mediu..

Understanding Surrogacy23-Jan-2014

Things to know when considering surrogacy Many couples are turning to surrogacy as a way t..

Advice for companies and individuals on reputation management and brand protection14-Jan-2014

Overview The Defamation Act 2013 is in force as from 1 January 2014. It is intended to p..

Do you own the rights to your name? 14-Jan-2014

A recent EU ruling has determined that social media company Pinterest do not own the rights to t..

Swaps - Where are we now?10-Jan-2014

We have recently concluded some swaps cases for clients of ours with encouraging six-figure sett..

New Year – New Beginning?06-Jan-2014

Today has been dubbed “Divorce Monday” by the media on the basis that this is report..

Safe Harbor – Any Port in a Storm?06-Jan-2014

Does your business operate or trade internationally? Most companies are aware that they must com..

Government publishes response to its consultation on apprenticeships in England18-Dec-2013

The Government has announced that the existing apprenticeship frameworks are to be replaced by n..

Domino’s Pizza workers told to speak English while at work12-Dec-2013

Staff at Domino’s Pizza in Preston were told that they could only speak English while at w..

Kuits advises on the opening of Cafe Football11-Dec-2013

Manchester Solicitors Manchester law firm Kuits Solicitors is advising Gary Neville and Ry..

Autumn Statement overview06-Dec-2013

Manchester Solicitors Growth Forecast to increase from 0.6% to 1.4%, with next year’s predi..

Christian Woman Mounts Landmark Case at Court of Appeal 06-Dec-2013

A Christian care worker, Celestine Mba, has sought a ruling from the Court of Appeal allowing he..

Christmas and New Year Opening Times06-Dec-2013

Date Times Open/Closed Tuesday 24th Dec ..

HMRC Clamps Down on Landlords06-Dec-2013

HMRC has launched a Let Property Campaign aimed at landlords who let out residential property wi..

It’s all in the Name06-Dec-2013

As part of the ‘Red Tape Challenge’ to reduce the raft of unnecessary regulations im..

HMRC to carry out targeted checks on employers advertising for interns05-Dec-2013

HMRC crack down on unpaid internships HMRC has written to more than 200 employers who have rece..

Kuits advises on 'Class of 92' production02-Dec-2013

Manchester Solicitors Manchester law firm Kuits has advised on the agreement to produce a major ..

Bulletin Article – Age Discrimination/John McCririck28-Nov-2013

John McCririck's age discrimination claim dismissed A Tribunal has dismissed John McCririck&rsq..

What a Landlord does not want for Christmas28-Nov-2013

In the run up to Christmas there will be a real temptation for rogue traders to gain access to e..

Case Law Bulletin: Young-v-Young 27-Nov-2013

The long-awaited high profile “big money” divorce case of Young v Young finally reac..

Commercial Landlords – Time is Ticking20-Nov-2013

As from 6th April 2014 landlords will no longer be able to use the ancient common law remedy of ..

Employment Law – Winter 2013 Update19-Nov-2013

Severe Weather – How to Manage this for your Business As winter closes in empl..

Vantage Point sold for £19.9 million 19-Nov-2013

Manchester Solicitors Manchester law firm Kuits Solicitors have advised Manchester property inve..

Financial Penalties for Employers who lose at Tribunal18-Nov-2013

From April 2014 onwards financial penalties may be imposed upon employers who lose at Tribunal. ..

Charities Relieved by Court Ruling05-Nov-2013

Commercial Property Solicitors The Court of Appeal (in the “Pollen Estate” case) has..

Direct your Attention to Direct Marketing01-Nov-2013

Manchester Solicitors The Information Commissioner’s Office (ICO) has recently released ne..

Government Looks to Deregulate Entertainment Further01-Nov-2013

Government Announces Plans to Relax Entertainment Rules The Government announced on 23rd October..

Is the Break Tide Turning?01-Nov-2013

Property Litigation Solicitors When the break date within a rental agreement falls in the middle..

Payments to Incorrect Payees01-Nov-2013

Manchester Solicitors A recent case has offered comfort to banks that have processed CHAPs payme..

You can make a contract in two different places01-Nov-2013

High Court rules that a contract can be made in two different jurisdictions In the recent case o..

Kuits advises San Carlo on Selfridges opening31-Oct-2013

Manchester Solicitors Manchester law firm Kuits Solicitors has advised family run restaurant gro..

Kuits advises Daily Internet plc25-Oct-2013

Manchester Solicitors Manchester law firm Kuits Solicitors has advised AIM listed web hosting pr..

Rent Arrears – Options for Landlords15-Oct-2013

In these times of economic uncertainty a real concern for Landlords is their options if it looks..

Bankruptcy Tourism explained09-Oct-2013

Recent reports have highlighted a growing number of EU nationals moving to the UK to utilise the..

Kuits advises on £3.9m shopping centre purchase08-Oct-2013

Manchester law firm Kuits Solicitors has advised Delta Properties on the £3.9 million purc..

Construction Law Update01-Oct-2013

Site Waste Management Plans Regulations to be Repealed On 1st October 2013, DEFRA are to re..

Employment Law Updates - Lord Sugar and 'Psycho Patient' Costumes27-Sep-2013

Lord Sugar’s Application for Costs is Refused by Tribunal Lord Alan Sugar has failed in hi..


The results are always exemplary. Kuits performance has clearly added value to our business.

Clive Ashcroft, head of Legal Services, Land Securities PLC

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Redeemable Preference Shares


Manchester Solicitors

It is not uncommon for private family companies and other privately held businesses to have significant loans due to their directors. They are a method of investing in a company but allowing for tax efficient extraction of profits at a later date and often date from the incorporation of the business.

Directors loan accounts allow for tax efficient extraction of profits from a business for higher rate tax payers rather than them paying a salary, bonus or dividend. Profits can be distributed as a part repayment of the directors loan and will suffer no tax in the directors hands. The effect of this is that whilst the company will have paid Corporation Tax on profits this is normally much less than the income tax the director would have paid themselves.

However, upon the death of a director the loan account may be subject to Inheritance Tax potentially at 40%. The payment of this tax needs to be found from somewhere and often requires a part repayment of the loan to fund it and this could put the company under financial pressure.

It is however possible to structure director's loan accounts as redeemable preference shares rather than a loan. The effect of this is that the shares can still be redeemed in the same way as loans in a tax efficient manner but once the shares have been held for 2 years they should qualify for relief from Inheritance Tax. In addition, no tax would be payable on the death of the holder.

Redeemable preference shares typically have a fixed value regardless of the performance of the company. However, the main downside when compared to a directors loan account is that if the business became insolvent the shares would rank below a loan on winding up and thus putting capital at greater risk.

However, as part if long term Inheritances Tax planning redeemable preference shares can play a great role in tax mitigation.

For more information on Redeemable Preference Shares or other Inheritance Tax planning contact Paul Bricknell

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