Decisions, decisions

The market for company sales is active and as a result there is much varied and interesting tax work in connection with these transactions. I have dealt with several sales in the past year and, generally, the focus is on 'the 10% question': in other words, securing the valuable capital gai...

Full description

Saved in:
Bibliographic Details
Published in:Taxation 2017-09, Vol.180 (4614), p.15
Main Author: Simpson, Craig
Format: Magazinearticle
Language:English
Subjects:
Capital gains
Corporate taxes
Entrepreneurs
Sale of a business
Stockholders
Subsidiaries
Tax rates
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The market for company sales is active and as a result there is much varied and interesting tax work in connection with these transactions. I have dealt with several sales in the past year and, generally, the focus is on 'the 10% question': in other words, securing the valuable capital gains tax entrepreneurs' relief on the disposal proceeds. Most sales are concluded at shareholder level with the shareholders selling their interest in the company to the purchaser in return for the agreed consideration. The type of consideration received depends on the capital gains tax rate and whether the tax is payable immediately or in the future. Doubtless, the well-advised client will be considering how to maximise their entrepreneurs' relief depending on the nature of the consideration received. However, it is important to focus on whether it is ever beneficial from a tax perspective not to sell the equity at shareholder level.
ISSN:0040-0149