Understanding the tax planning opportunities and avoiding tax traps and pitfalls is at the core of all our planning and reconstruction work. We offer integrated tax advice in respect to the acquisition and disposal of businesses but in addition we offer a further range of specialist tax advice.
Own Share Purchase
Where a limited number of shareholders are looking for an exit at a time when no company sale is under contemplation, a company share repurchase can offer a quick and straightforward solution.
Unfortunately, share repurchases are subject to a complex tax treatment and onerous restrictive conditions which can result in a penal rate of income tax. However, with care, sale proceeds can be received tax efficiently as a capital receipt taxed at capital gains tax rates with the possibility of achieving entrepreneurs’ relief and a 10% tax rate.
Company share repurchases are also often used to facilitate the departure of a dissenting minority shareholder and by minimising tax leakage a commercial deal is often achievable at an acceptable cost to the continuing business.