Tax Planning

Business structures evolve over time, hopefully for good reasons. Sometimes, the rationale for a particular structure changes and it can then become inefficient from a tax viewpoint. We think it is good to review a business structure every few years to ensure it continues to be fit for purpose in terms of both tax efficiency and future prospects, eg if there is a sale in the offing or retirement of key personnel. If there is to be a milestone change, it’s important to consider what changes are necessary well before the event happens.

We can provide advice to include whether it is appropriate to continue with or change to a combination of:

• UK limited companies
• UK partnerships
• Foreign entities
• Ownership through trusts and other family investment vehicles

We can also advise you on establishing share option schemes and other methods of passing your business to the next generation of the family and/or of the management team and extracting value on retirement in a tax-efficient manner. These topics are generally inter-related.

Business sales

Where a business is to be sold, it is often the case that the assets are held in a way which complicates the sale process. One common example is where a company owns the trading premises but it is unlikely that the premises will be part of the sale. We can advise on methods of restructuring which result in the assets being in vehicles which facilitate the sale as and when a price is agreed. We can also advise on tax indemnities and warranties on a sale and on the tax implications of earn outs and other forms of deferred consideration.

It is, however, critical for us to become involved with the sales process as early as possible to give the planning sufficient time to be effective.