How to increase your value and buy or sell your business Mike Cooper Tax Partner.
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Transcript of How to increase your value and buy or sell your business Mike Cooper Tax Partner.
How to increase your value and buy or sell your businessMike Cooper
Tax Partner
cvdfk.com
Overview
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Share v asset Structures ERPlanning points Types of consideration
Employment taxes Warranty & indemnities
Post sale planning Inheritance tax Tax returns Tax efficient investments
Pre-sale
The deal process
Post sale
cvdfk.com
Share v Asset Sale
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Single taxation
Share sale
CGT @ 10% - 28%
Double taxation
Asset sale
28% - 47%
cvdfk.com
Securing the 10% Tax Rate!
Entrepreneurs’ Relief (ER) reduces the capital gains tax rate down to 10%. The main qualifying conditions are
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10% TAX RATEAll conditions satisfied for >
12 months
Employee or officer
5% shares & voting rights
Trading Company
Maximum individual lifetime entitlement to ER of £10million! Share options – A way around the 5% voting rule
cvdfk.com
Structuring – Property or Investments
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Shareholders ShareholdersShareholders
Property TradeProperty AND
Trade
Cheapest to implement
Most tax efficient
Can sell property for minimal taxCan sell trade for 10%
cvdfk.com
Sellers Planning
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Extracting surplus funds in advance Use of pensions Claiming reliefs
R&D tax relief
Capital allowances
Share options – Tying in key employees for low tax cost Split of consideration – cash / loan notes / shares Emigration
cvdfk.com
Buyers Planning
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Buyers Planning
Financing
Structure Warranties
IHT
Shareholders
Reliefs
Due Dilligence
cvdfk.com
Post sale – compliance and planning
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Tax protection/ wealth management
IHT Planning
cvdfk.com
Key Contact
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@cvdfk
Mike CooperHead of Tax
+44 (0)7976 709 910 [email protected]
Your nearest officeChantrey Vellacott DFK LLPRussell Square House10-12 Russell SquareLondonWC1B 5LF
© Matthew Arnold & Baldwin LLP, 2014. All rights reserved.
How to increase your value & buyor sell your business
Emma Cameron presenting on 23 September 2014