Whether you’re buying or selling a business – every transaction has tax implications. So, if you’re planning a deal, you’ll need to consider the tax position carefully. There’ll usually be tax to pay, either at a corporate or personal level, and getting it wrong can be costly.
If you’re selling a business, do you know if you’ll qualify for Entrepreneurs’ Relief? What will you do with your cash once you’ve got it? Have you thought about your Inheritance Tax exposure and planning?
If you’re buying a business, do you understand the target’s tax profile? Are you certain there aren’t any hidden or unpaid tax liabilities?
SELLING YOUR BUSINESS
Whether it’s to private equity, to trade buyers or management buy-outs (MBOs); our tax team have advised on a huge range of transactions. That means we know exactly how to structure your deal, so you don’t run into any unpleasant surprises.
On top of that, we’ll work with you to consider alternative structures that could benefit your tax position. We’ll put these to the buyer. And we’ll work alongside your solicitor and corporate finance advisor to protect your value – both at the time of the sale and afterwards.
Perhaps a buyer doesn’t want to buy certain assets of your business? We’ll advise on how these assets can be extracted before or alongside the sale in a tax-efficient way.
We’ll make sure you qualify where possible for Entrepreneur’s Relief (a reduced 10% rate of Capital Gains Tax). And we’ll work with you to mitigate any potential Inheritance Tax costs through Business Relief, structure your estate and Will, and protect your wealth for future generations.
When’s the best time to think about all this? Well, there really is no time like the present. And that’s because you’ll have far more flexibility with planning opportunities if you act in advance of selling your business. Ideally well before the business is put on the market and negotiations commence.
BUYING A BUSINESS
So, you’re looking to make acquisitions. But do you know whether the target company has any tax liabilities that could reduce its value? Our tax due diligence services investigate your target’s tax affairs, identifying and measuring any tax exposure. Then, if they’re found, we’ll help you to factor suitable protections into the deal; which could even be a reduction in price.
Knowing the seller’s tax position will get you on the front foot in discussions and get the deal structured in the best way for both parties. And that could save you a lot of time, and a lot of money.
How will your deal be financed? Do you know whether the finance costs will be tax deductible and when? Without experienced advice, this area can get tricky. But we’ll make sure you understand the post-tax cost of finance, well in advance of your transaction.
Following acquisition, integration of the target business becomes the aim of the game. Often, your group structure can be simplified to help with this. To find out if that’s the case, you’ll be wanting to head over to our Business Structuring section for further details.
GET AWARD-WINNING TRANSACTION TAX ADVICE
Our specialist team have masses of transaction tax experience. Many of the team have a background from the Big 4 or the large mid-tier firms. We’re part of Tolley’s 2018 Best Tax Practice in a Regional Firm, and we frequently handle high value and complex transactions, both in the UK and overseas.
And because we work closely with our in-house, globally influential Corporate Finance team, we buy, sell and reshape businesses every day. We know the process inside out, from the sticking points to the golden opportunities, and this experience helps us fine-tune your transaction approach to achieve your goals.
But for us, it’s never just about one transaction. We can help with a lot more than tax advice. And that’s why it’s about looking at the bigger picture, building a relationship with you, and finding out how we can help you to reach all your goals. Both now, and in the future.
Tax Senior Manager
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