Tax planning is key when starting up a business, vital when running it and crucial when selling it.
Astute tax planning is a key driver in maximising business success. It is essential to have a clear vision of your goals and to plan from the outset. Every corporate transaction has a tax implication and getting the strategy right is integral to the success of your business.
Tax Planning Help For Business Owners
Many of the companies we form as part of acquisitions planning or new company start-ups are set up to qualify for Enterprise Investment Scheme relief. These schemes can provide significant Income Tax relief on share subscriptions together with valuable capital gains tax reliefs. They can also act as a major plus for prospective investors, who may require assurances on this prior to committing to an investment.
Corporate acquisitions and disposals must be structured in the most tax efficient way for both purchasers and vendors. Sometimes it is necessary to reorganise the business or group structure either pre or post sale to optimise tax efficiency and avoid tax traps.
We can advise on and implement restructuring schemes including the preparation and negotiation of HMRC tax clearances.
Shareholder Tax Planning
Following the abolition of both Indexation Allowance and Taper Relief, particularly Business Asset Taper Relief, it is important to ensure that transactional tax burdens are minimised through implementation of return maximising structuring and the use of the new Entrepreneurs Relief.
Entrepreneurs Relief effects earnout planning. It has an affect on Qualifying and Non-Qualifying loan note structures, and a more detailed consideration of these potential impacts is now required before the disposal of the shares.
We can advise on these and other shareholder tax issues including the structuring of earnouts and issues relating to the restricted securities regime.
Share options are an important tool for company tax mitigation and for employee incentives. Schemes can be matched to meet company objectives and we can assist companies to identify the scheme that will best meet its needs. Schemes available include:
- Enterprise Management Incentives (EMI) (PDF)
- Phantom Share Scheme (PDF)
- Unapproved employee share ownership plans (PDF)
- Company share option plans (CSOP) (PDF)
- Savings related share options (PDF)
- Share incentive plans (SIP) (PDF)
"Job well done! Thank you very much… We would like to compliment Alliotts for the excellent professional service and guidance that we have received while in the process of the rather complicated share sale transfer"
(Management buy out)