Since 2018 there has been a huge interest in the medicinal cannabis and CBD sector for both investors and operators alike. Both territories and companies entering the sector face various challenges due to its complex legal and regulatory nature.
Who in the CBD Sector can we help?
- Brand owners and retailers in the CBD sector looking to enter the UK and European consumer market
- Owners and non-resident companies and directors looking to gain entry and footholds into the UK and European markets for CBD and medicinal cannabis
- Contract manufacturers of products for the CBD sector.
Mitchell Charlesworth Chartered Accountants can help CBD sector businesses with the following
- UK company formation, to include business current account for the CBD and medicinal cannabis sector, in particular Canadian and other overseas entities
- Help for CBD businesses with payment processing for your e-Commerce site or point of sale (POS)
- Cross border VAT advice for trade with member states in Europe
- Statutory accounts preparation for the UK tax authorities
- Management accounts and assistance with overall finance function.
Other services available to Medicinal Cannabis Retailers
Tax issues affecting the sector:
- International tax issues – we will advise on double taxation treaties and permanent establishment rules
- UK Subsidiary – it is very important that your international CBD business is structured correctly and we will advise on this
- Profit extraction -v- reinvestment – with an international business structure in a fast growing sector, how you extract profits or whether you reinvest them into growth can be a key factor in your long term success
- Transfer pricing – we deal with issues around international transactions between connected companies and look to structure them to minimise the likelihood of HMRC investigations
- Capital allowances – many companies in the CBD sector will be looking to invest in plant and machinery in their initial set up stage. We advise on the impact of capital allowances to their business
- Research & Development – many businesses in the CBD sector will be carrying out research and development activities without realising, or without realising that there are government tax credits available. We will review your activities to determine whether tax credits are available to you and work a claim through for you
- Patent Box – some CBD businesses will have patents on aspects of their business. We can advise on the use of the Patent Box in order to lower the corporate tax rate.
To discuss how we can support your business, please contact a member of the team to the right of this page.